Find your presumptive income and tax under Section 44AD, based on how much of your turnover is digital versus cash.
Turnover is split into its digital and cash portions, each taxed at its own presumptive rate, then the combined presumptive income is taxed at your normal income tax slab rate — the same engine used by the income tax calculator.
Presumptive income: (Digital turnover × 6%) + (Cash turnover × 8%)
Who is eligible for Section 44AD?
Resident individuals, Hindu Undivided Families, and partnership firms (not LLPs) carrying on an eligible business, with turnover up to ₹2 crore — or up to ₹3 crore if at least 95% of receipts and payments are digital.
Can I deduct business expenses separately under 44AD?
No. The presumptive rate is deemed to already account for all business expenses, depreciation, and (for firms) partner remuneration and interest — you cannot claim these separately on top of the presumptive income.
What happens if I opt in and later declare a lower income?
If you decide to declare income below the presumptive rate in a later year, you lose eligibility for Section 44AD for the following five assessment years, and may need to maintain full books and undergo an audit instead.