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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 does Section 44ADA of the Income Tax Act 1961 deal with?
Section 44ADA (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.
What is the new section number for Section 44ADA under the Direct Tax Code 2025?
Section 44ADA of the ITA 1961 maps to Section 53 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 44ADA under the new tax code?
Section 44ADA is marked as "Retained" with status "Modified". Impact: Very High - The go-to tax filing section for independent professionals.
What are the key changes to Section 44ADA under DTC 2025?
Strict API tracking of digital receipts to validate eligibility for the enhanced 75 Lakh limit.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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