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.
Use the Income Tax CalculatorModel the tax impact alongside this guide.
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):
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)
⚠️
Freelancers and Digital Creators — Classification Risk: YouTube creators, influencers, podcast hosts, and social media consultants often struggle to fit into the "technical consultant" category. If the income tax department classifies such income as "business" rather than "profession," Section 58 does not apply — Section 58 (business presumptive) applies with its ₹3 crore limit and 6% rate instead. Verify with a CA how your specific professional services are classified.
Case Study: Dr. Ananya — Presumptive vs Actual — Which Saves More?
Dermatologist + Aesthetic Consultant, Delhi — Tax Year 2026-27
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 (50%)
Declared income: ₹36.5 lakh
Actual profit
₹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 July 2026 for Tax Year 2025-26 (old Act, AY 2026-27) | 31 August 2027 for Tax Year 2026-27
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
Section 58 (old Section 44ADA) is available to individuals and partners of firms carrying on a specified profession — legal, medical, engineering, architecture, CA/CS/CMA, film artistry, interior design, or technical consulting. Gross receipts must not exceed ₹75 lakh in the tax year. The taxpayer declares 50% of gross receipts as net income — no books of account or tax audit required. The scheme cannot be used by companies or LLPs, and is not available for professions not in the notified list.
Yes. A medical practitioner with ₹70 lakh in professional fees (consulting, visiting, clinic fees) can opt for Section 58 presumptive for Tax Year 2026-27, since ₹70 lakh is within the ₹75 lakh limit. Declared income = 50% × ₹70L = ₹35 lakh. No books of account are required. No tax audit needed. Advance tax must be paid as a single installment by 15 March 2027 (not in quarterly installments). Use ITR-4 for filing.