Section 44AD → Section 58

Presumptive taxation for small businesses and professionals

New reference Section 58 (also covers old 44ADA and 44AE)

Income-tax Act, 1961Section 44AD

44AD: eligible business with turnover up to ₹2 crore (₹3 crore if cash receipts ≤ 5%); income deemed 8%, or 6% of digital receipts
44ADA: specified professionals with receipts up to ₹50 lakh (₹75 lakh if cash ≤ 5%); income deemed 50%
44AE: goods carriages; income per vehicle per month
Three separate sections with their own conditions

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 58 (also covers old 44ADA and 44AE)

All three schemes consolidated into one section 58
Thresholds and presumptive rates carried over
Rules on opting out of the scheme carried over
Books and audit consequences now link to sections 62 and 63

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Consolidation of three sections into one, with the rules for each scheme presented together. No change to thresholds or rates.

Practice notes

Books of account (old 44AA) are now section 62; tax audit (old 44AB) is section 63.
When you write "opted for presumptive taxation" in a tax year 2026-27 computation, cite section 58 and the relevant clause.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Related sections

139→263Return of income: original, belated, revised, updated and defective returns 234C→425Interest for deferment of advance tax instalments