Section 44ADA Query - 75 Lakh Limit Clarification

If total 60 lakhs are through banking channel, you are eligible for sec. 44ADA IT act.

Invoices with GST charges will also be required along with bank statement and payment acknowledgements.

Thank you for clarifying! Just to be 100% certain - since my entire 60 lakhs (approx) will be through banking channels and I qualify for Section 44ADA:

I can declare 50% of gross receipts as income, which would be 30 lakhs in my case (50% of 60 lakhs), correct?

Yes, that is minimum as per the rule. You can declare even more than that.

Under Section 44ADA, the Rs 75 lakh threshold for FY 2026-27 applies only if at least 95% of your gross receipts come through banking channels (cash receipts cannot exceed 5% of total). If your total receipts cross Rs 75 lakh but you meet the banking condition, you can still opt for 44ADA. Above the threshold without meeting the banking condition, or if you want to declare less than 50% profit, a full audit under Section 44AB applies.