Income-tax Act 2025 for Professionals Using 44ADA (Now Section 58) — FAQ Guide
Reviewed by CA Nikhil Gupta · Last reviewed 26 July 2026
If you're a doctor, lawyer, CA, architect, or technical consultant filing your tax return, the presumptive scheme under Section 58 of the Income-tax Act 2025 (old: Section 44ADA) is your most powerful simplification tool — declare 50% of gross receipts as income, skip detailed books, skip the audit. The threshold is now ₹75 lakh. This FAQ-format guide answers every question professionals actually search for, with worked examples for common professional categories.
Section 44ADA Becomes Section 58 — What Changed
The presumptive taxation scheme for professionals under Section 44ADA of the old Act is renumbered as Section 58 in the Income-tax Act 2025. The core mechanics are identical — declare 50% of gross receipts as net income — but the threshold has been enhanced, and the new Act adds clarity on what constitutes "gross receipts" for digital professionals.
| Parameter | Old Act (Section 44ADA) | New Act (Section 58) |
|---|---|---|
| Eligible professions | Notified: legal, medical, engineering, CA, CS, architectural, technical consulting, film artist, interior design | Same notified list — refer Income-tax Rules 2026 Rule 6F |
| Gross receipts limit | ₹50 lakh | ₹75 lakh (enhanced from Budget 2023) |
| Presumptive income rate | 50% of gross receipts | 50% of gross receipts (unchanged) |
| Books of account | Not required under 44ADA | Not required under Section 58 |
| Tax audit | Not required if income ≥ 50% | Not required if income ≥ 50% and receipts ≤ ₹75 lakh |
| 5-year lock-in (if opted out) | Yes — 5-year bar on re-entry | Yes — 5-year bar continues under Section 58 |
Who Qualifies as a "Professional" — The Notified List
Section 58 applies only to professionals engaged in the following notified occupations (Rule 6F, Income-tax Rules 2026):
- Legal: Advocates, barristers, solicitors, legal consultants
- Medical: Physicians, surgeons, dentists, pathologists, radiologists, physiotherapists, and other medical practitioners
- Engineering: Civil, mechanical, electrical, chemical engineers and technical consultants
- Architecture
- CA, CS, CMA: Practising chartered accountants, company secretaries, and cost accountants
- Film artistes: Actors, directors, editors, cinematographers, music directors, art directors, dance directors, screenplay writers, lyricists, and producers
- Interior designers
- Technical consultants: Broadly — includes IT consultants, management consultants, and similar knowledge professionals (subject to exact classification)
Case Study: Dr. Ananya — Presumptive vs Actual — Which Saves More?
Dr. Ananya has two income streams: ₹55 lakh from consulting (clinical fees from hospitals and clinics) and ₹18 lakh from cosmetic procedures at her own clinic (where she has 3 staff and equipment). Total: ₹73 lakh. Her actual expenses are: staff salaries ₹12L, clinic rent ₹6L, medical equipment EMI ₹8L, other supplies ₹4L. Actual profit = ₹73L − ₹30L = ₹43 lakh.
Section 58 presumptive income (₹36.5L) is lower than actual (₹43L). Dr. Ananya chooses presumptive — saves approximately ₹3 lakh in tax (on the ₹6.5L difference, at ~46% effective rate including surcharge). Caveat: her ₹73L gross receipts must be verified — if either income stream is classified as "business," the entire receipts may exceed the ₹75L Section 58 threshold in future years.
How to File — ITR Form and Schedules
- Use ITR-4 (Sugam) if declaring income under Section 58 (+ salary + one house property + other sources)
- Use ITR-3 if you have additional capital gains, multiple businesses, or other complex income
- In ITR-4, fill Schedule BP (Business Profession) — select "Section 58" and enter gross receipts and declared profit (50% of receipts)
- No need to upload books or supporting documents — the return itself is sufficient declaration
- Due date: 31 August 2026 for FY 2025-26/AY 2026-27 (non-audit ITR-4 presumptive filers under Section 44ADA already get the 31 August date this cycle, not 31 July)
Section 58 — Key Points for Professionals
- Gross receipts ≤ ₹75 lakh? → Section 58 presumptive is available
- Declare ≥ 50% of gross receipts as income → no audit, no books required
- Advance tax: pay full 100% in single installment by 15 March — four-installment rule does not apply to presumptive professionals
- Once opted, maintain for 5 years — opt-out triggers audit and 5-year re-entry bar
- Actual income above 50%? → Opt for actual (lower tax) but then maintain books and face possible audit
- Partner income from firm: keep separate from professional income — different taxation rules
Frequently Asked Questions
Frequently Asked Questions
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