Presumptive Taxation (Section 44ADA)

💡 Quick Definition: A special tax scheme for Indian freelance professionals declaring 50% of gross revenue as taxable profit without maintaining detailed books.

Detailed Explanation & Workplace Application

Under Section 44ADA of the Indian Income Tax Act, technical, design, marketing, and legal professionals with gross receipts up to ₹75 Lakhs can declare 50% as taxable income, drastically reducing administrative overhead and tax liability.

Practical Syntax / Framework Formula

Gross Foreign Freelance Income: ₹30,00,000
Taxable Profit under 44ADA (50%): ₹15,00,000
Net Tax Payable after standard deductions: ~₹1,40,000 (effective tax rate under 5%)

← Back to Full Glossary Learn Global Freelancing & USD