Section 44ADA allows 50% income tax on gross receipts

Section 44ADA allows eligible professionals to pay tax on only 50% of their gross receipts as taxable income, with the remaining 50% treated as a deemed expense deduction.

The scheme applies to specified professionals such as doctors, lawyers, CAs, architects, engineers, IT consultants, and designers earning fees from independent practice.

Gross receipts must be up to ₹50 lakh, extendable to ₹75 lakh if cash receipts do not exceed 5% of total gross receipts.

A consultant billing ₹60 lakh a year can legally pay tax on just ₹30 lakh under Section 44ADA, with no need to maintain expense bills, books, or undergo audit.