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The presumptive taxation scheme under sections 44AD, 44ADA, and 44AE allows small taxpayers to declare income at a prescribed rate without maintaining detailed accounts. For example:
Section 44AD: Applicable to businesses (excluding certain specified businesses) with a turnover of up to ₹2 crore. Income is presumed at 8% (or 6% for digital transactions).
Section 44ADA: Applicable to professionals with gross receipts of up to ₹50 lakh. Income is presumed at 50%.
Section 44AE: Applicable to taxpayers engaged in the business of plying, hiring, or leasing goods carriages.
If a taxpayer opts out of these schemes and declares lower income than the presumptive rate, they are required to maintain books of account and get them audited.