Sec 44ADA of income tax act 1961

An eligible person engaged in eligible profession* under section 44ADA can declare his income @ 50% without meeting the requirements of section 44AA and 44AB. However, if the eligible professional who claims that the income to be lower than income determined under Section 44ADA and the income exceeds the maximum amount which is not chargeable to tax, then he should maintain books of accounts as per section 44AA and required to be get audited by a Chartered Accountant.

*Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA ;

A person resident in India engaged in following professions can take advantage of presumptive
taxation scheme of section 44ADA:-
1) Legal
2) Medical
3) Engineering or architectural
4) Accountancy
5) Technical consultancy
6) Interior decoration
7) Any other profession as notified by CBDT

If your case falls within eligible person engaged in eligible profession and supposed to claim income lower than the income determinable under section 44ADA and income exceeds the maximum amount which is not chargeable to Tax, then the assessee should maintain regular book of accounts and has to get his accounts audited as per section 44AA and 44AB respectively of the Income Tax Act.

As Ms. Teena Jain said, if the individual assessee is having gross receipts of Rs.5.26 Lakhs and the income is lower than the income computed under section 44ADA, theoretically he has to maintain books of accounts and also has to get audited.

Practically, if you declare your income as per section 44ADA, then the assessee will have an income of Rs.2.63 lakhs.

Assuming that the information is for the A Y.2017-18 and the total income of the assessee does not exceeds Rs.5 lakhs, then the assessee won't have to pay any tax as the total income falls below Rs.5 lakhs therefore Govt. provides the marginal tax payer like them with a rebate U/s 87A upto Rs.5,000 on tax payable. So there is no need to claim the actual expenses, simply declare your income under section 44ADA and file your return of income.

1. Professionals who can make use of this section are from the legal, medical, engineering, architectural, accountancy, tech consultancy, and interior decoration backgrounds. 

2. Applicable to resident Indians and to individuals, HUF or partnerships but not a limited liability partnership firm. 

3. Total Gross Receipts of assessee should not exceed more than Rs 50 lakh in a financial year to benefit from this section. 

4. The income of any person making use of this section is considered to be 50% of the Total Gross Receipts for the year and no further deductions will be allowed to be claimed for the purpose of the profession. 

5. The assesse would NOT be required to maintain books of accounts or get the account audited unless he claims that the profi ts are less than 50% of the Total Gross Receipts.