Section 44ADA → Section 53
Special provision for computing profits and gains of profession on presumptive basis
Quick Answer
Section 44ADA of the Income Tax Act, 1961 (Special provision for computing profits and gains of profession on presumptive basis) corresponds to Section 53 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 44ADA
The starting point is Section 44ADA of the Income Tax Act, 1961 — special provision for computing profits and gains of profession on presumptive basis. Professionals (doctors, CAs, lawyers) with gross receipts up to Rs. 50 Lakhs can declare 50% as presumptive profit.
From 1st April 2026, the same subject sits at Section 53 of the Income-tax Act, 2025 — retained and renumbered as Section 53 of the Income-tax Act, 2025. Retained. The enhanced limit of Rs. 75 Lakhs is fully integrated for professionals whose cash receipts do not exceed 5%.
For Section 44ADA, the practical impact is rated Very High. The go-to tax filing section for independent professionals.
Sec 44ADA
Provision Summary
Professionals (doctors, CAs, lawyers) with gross receipts up to Rs. 50 Lakhs can declare 50% as presumptive profit.
Sec 53
Provision Summary
Retained. The enhanced limit of Rs. 75 Lakhs is fully integrated for professionals whose cash receipts do not exceed 5%.
Key Changes & Highlights
- Strict API tracking of digital receipts to validate eligibility for the enhanced 75 Lakh limit.
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Frequently Asked Questions
What is Section 44ADA of the Income Tax Act, 1961 about?
Section 44ADA of the Income Tax Act, 1961 covers special provision for computing profits and gains of profession on presumptive basis. Professionals (doctors, CAs, lawyers) with gross receipts up to Rs. 50 Lakhs can declare 50% as presumptive profit.
Which section replaces Section 44ADA in the Income-tax Act, 2025?
Section 44ADA of the Income Tax Act, 1961 maps to Section 53 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The enhanced limit of Rs. 75 Lakhs is fully integrated for professionals whose cash receipts do not exceed 5%.
What is the impact of the change to Section 44ADA under the new tax code?
The transition impact for Section 44ADA is rated Very High. The go-to tax filing section for independent professionals.
What should I watch out for when Section 44ADA moves to the 2025 code?
Strict API tracking of digital receipts to validate eligibility for the enhanced 75 Lakh limit. These points are specific to Section 44ADA (Special provision for computing profits and gains of profession on presumptive basis).
Disclaimer: This mapping of Section 44ADA (Special provision for computing profits and gains of profession on presumptive basis) to Section 53 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 44ADA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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