Section 58/legacy 44AD is limited to resident individuals, HUFs and partnership firms other than LLPs carrying eligible business.
Section 58/legacy 44AD is limited to resident individuals, HUFs and partnership firms other than LLPs carrying eligible business. Agency, commission/brokerage, specified profession and goods-carriage business are excluded.
Eligibility depends on person, residence, business type, turnover and the 5% cash-receipt test. A company, LLP or non-resident cannot use this scheme.
Check legal person; residence; excluded activity; turnover; cash percentage; opt-out history; then calculate presumptive income.
A resident partnership firm running a retail shop can qualify; an LLP with the same turnover cannot. An insurance agent is excluded because commission income is specifically outside the scheme.
The example is an illustration, not a substitute for the taxpayer's facts. A change in status, period, payment mode, document, city, asset, relationship or scheme can change the result.
Search pages often state a rate or limit without identifying the governing base. The calculation must distinguish gross receipt from taxable profit, tax from TDS, a deduction from an exemption, salary from business income, and an accounting entry from the tax treatment.
| Decision point | Required treatment |
|---|---|
| Legal year | Use the Act, rules and notification effective for the income or transaction period |
| Taxpayer category | Confirm residence, age, entity, employee/business status and regime |
| Calculation base | Use the statutory definition rather than CTC, net bank receipt or accounting label |
| Ceiling or rate | Apply actual-amount, percentage, shared, lifetime and gross-income limits in sequence |
| Documentation | Link every input to an invoice, statement, contract, certificate or official record |
| Final output | Show tax, surcharge, cess, interest and TDS/TCS credits separately |
This page is written around the entities and concepts search engines expect for the topic: section 58, 44AD, presumptive income, 6%, 8%, cash receipts. They are used only where relevant and are connected to the live calculator and knowledge hub rather than repeated mechanically.
For the complete rules on this topic, see the core guide: Presumptive Taxation (44AD/44ADA) Under Income-tax Act 2025.
See the broader Income-tax Act 2025 study guide hub for related rules and calculators on this topic.
Section 58/legacy 44AD is limited to resident individuals, HUFs and partnership firms other than LLPs carrying eligible business. Agency, commission/brokerage, specified profession and goods-carriage business are excluded.
Finin2min rule: establish eligibility, calculate transparently, and preserve an audit trail.
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.