If your turnover is within the limit, 44AD can make income tax dramatically simpler. Here's who qualifies and how it works.
Section 44AD is a scheme that lets eligible small businesses declare a presumptive profit instead of maintaining detailed books and getting audited. For many online sellers it's a huge simplification.
You declare 8% of turnover as profit — or 6% for the portion received digitally (bank, UPI, marketplace settlements). Since most e-commerce receipts are digital, the 6% rate often applies to the bulk of your sales.
Apply 6%/8% to turnover to get presumptive profit, then run it through the Income Tax Calculator to see your liability and whether advance tax applies.
44AD is an income-tax scheme. Your GST obligations — registration, returns, multi-state registration — are unaffected.
Our in-house CA & CS team set up your virtual office, VPOB and GST end to end — from ₹15,290/yr.
💬 Talk to our team View plans →8% of turnover generally, or 6% for digitally received turnover such as bank, UPI and marketplace settlements.
No. 44AD is available to resident individuals, HUFs and partnership firms, but not LLPs or companies.
No. 44AD only simplifies income tax. GST registration and returns continue as normal.
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