The presumptive tax scheme, explained for freelancers

Section 44ADA lets professionals with gross receipts under the prescribed limit declare 50% of receipts as taxable income, without maintaining detailed books. It significantly cuts compliance work for consultants, freelancers, and other specified professionals. It isn't always the better option though. If your actual expenses exceed 50% of receipts, filing under the regular scheme with full books may result in lower tax. A CA can run both calculations before you choose.