Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
₹50 lakh, or ₹75 lakh
The basic ceiling for Section 44ADA is ₹50 lakh of gross professional receipts in the year. A higher limit of ₹75 lakh applies if your cash receipts are 5% or less of total receipts — rewarding professionals who collect digitally. The test is on receipts, not profit. Confirm the current limits per the Finance Act.
What happens above the limit
Cross the applicable limit and 44ADA is not available — you must maintain books of account and compute your actual professional income, and a tax audit can apply. So the limit is the dividing line between simple presumptive filing and full accounting. The 5% cash condition is what unlocks the higher ₹75 lakh threshold.
A worked example
Example: a consultant with ₹70 lakh of receipts, almost all received by bank transfer (cash under 5%), qualifies for 44ADA under the ₹75 lakh limit and declares ₹35 lakh as income. Had 20% been in cash, she’d be capped at ₹50 lakh and would be over it — needing books and possibly an audit. Collecting digitally directly affects eligibility. Our team can confirm your position and file it.