Tax KB
budgetFebruary 2025High impact

44AD/44ADA Turnover Limits Raised – Now ₹3 Cr & ₹75 Lakh

The presumptive taxation turnover threshold for businesses has been raised to ₹3 crore, and for professionals to ₹75 lakh, from FY 2025-26.

Affected taxpayers

Small businessesFreelancersProfessionals

In Budget 2025, the turnover limit for Section 44AD presumptive taxation has been increased from ₹2 crore to ₹3 crore, provided cash receipts do not exceed 5% of total turnover.

For professionals under Section 44ADA, the limit is now ₹75 lakh (up from ₹50 lakh).

This change is expected to benefit millions of small traders and freelancers by reducing compliance burden and audit requirements.

Tax KB's ITR form finder and presumptive taxation guide have been updated to reflect these new thresholds.