Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningPaying tax on a fixed percentage of turnover instead of keeping detailed books.
Relevant ActIncome-tax Act, 1961
Section / ruleSections 44AD, 44ADA, 44AE
Technical meaning
Schemes under which business or professional income is deemed at a prescribed percentage of turnover or receipts, subject to eligibility limits.
Practical example
A consultant with receipts of Rs 40 lakh may declare 50% as income under 44ADA.
Related terms
Official reference
Income-tax Act, 1961, Sections 44AD, 44ADA, 44AE
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