Circular No. 6/2016 — Presumptive taxation for professionals u/s 44ADA

Date: 2016-02-29 Status: ACTIVE Category: Business Income / Deductions Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)

Summary

Presumptive taxation scheme under section 44ADA for professionals. Income declared at 50% of gross receipts.

Key Directions

  1. Available for professionals specified in section 44AA(1).
  2. Gross receipts must not exceed Rs. 75 lakhs (if digital receipts > 95%).
  3. Deemed income: 50% of gross receipts.
  4. No requirement to maintain books of account.

Applicability Under IT Act 2025

Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.

Old Section (1961 Act)New Section (2025 Act)Consistent?
44ADA58Yes

Cross-References

Act Sections

  • Section 44ADA
  • Section 58
  • None identified

Key Case Law (Circular Supremacy)

  • To be populated — cases where this circular was cited/applied

Full Text

Full text to be added — see raw/circulars/ for PDF when available

Source