What is the Difference Between Sections 444ad and 44ada?

RG Posted by: Rishi Ghosh
• 07 October, 2025
7 Reply

Here are a few differences between the sections 44AD and 44ADA: 

  • Under Section 44AD, resident individuals, HUFs, partnerships, firms, or individuals who have not claimed any profit-linked deductions are eligible taxpayers. Whereas, under section 44ADA, resident individuals and resident partnership firms are eligible taxpayers, excluding LLPs. 
  • Under section 44AD, businesses covered under section 44AE, agency business, and commission brokerage business are eligible business professions. On the other hand, under section 44ADA, legal, medical, architectural, accountancy, technical, interior designing, engineering, or any other profession that is notified by the official gazette. 
  • Under section 44AD, you can declare your business income turnover annually at 8% if the transactions are in cash and 6% if the transactions are through digital methods. On the other hand, under section 44ADA professional can declare their total income at 50% of the annual income received by the recipient. 

Tags : Difference Between 444ad and 44ada

  • Vipul Dulani 13 October, 2025

    What are the consequences of claiming a profit lower than the actual under section 44AD and 44ADA? 

    • S
      Savetaxs 13 October, 2025

      Any individual can claim profits lower than the actual income if they are carrying business or profession under section 44AD and 44ADA.  

      The consequences of claiming profits lower than the actual income are: 

      Section 44AD: Regular books of accounts to be maintained when the income is more than the basic exemption limit, then an audit will be carried out according to the provisions of Section 44AB. 

      Section 44ADA: Regular accounts must be maintained to get them audited if the income is more than the basic exemption limit. 

  • Rajbeer Kumar 11 October, 2025

    Here are a few differences between the sections 44AD and 44ADA: 

    • Under Section 44AD, resident individuals, HUFs, partnerships, firms, or individuals who have not claimed any profit-linked deductions are eligible taxpayers. Whereas, under section 44ADA, resident individuals and resident partnership firms are eligible taxpayers, excluding LLPs. 
    • Under section 44AD, businesses covered under section 44AE, agency business, and commission brokerage business are eligible business professions. On the other hand, under section 44ADA, legal, medical, architectural, accountancy, technical, interior designing, engineering, or any other profession that is notified by the official gazette. 
    • Under section 44AD, you can declare your business income turnover annually at 8% if the transactions are in cash and 6% if the transactions are through digital methods. On the other hand, under section 44ADA professional can declare their total income at 50% of the annual income received by the recipient. 

  • Arnav Khanna 09 October, 2025

    Section 44AD applies to small businesses that have an annual turnover of less than 2 crores, and this is best for the manufacturers, traders, and other services that are not covered under Section 44ADA. 

    Section 44ADA for the professionals who don't have a total income of more than 50 lakhs. This includes lawyers, doctors, accountants, and architects.

    • LJ
      lucky jain 14 October, 2025

      Here are the benefits of the sections 44AD and 44ADA given below:  

       

      Benefits of the section 44AD: 

      • It has a simple accounting. 
      • No need to require detailed bookkeeping. 
      • If the declared income is lower, then you have to require an audit, unless there is no need for the audit. 
      • Income exceeds the basic limit of exemption. 

       

      Benefits of the section 44ADA: 

      • It reduces the tax liability by deeming 50% of the gross profit receipt. 
      • It enables a smooth running of the self-employment activities. 
      • Maximizes cash flow and savings for small businesses and proprietorships. 

       

    • L
      Lokesh 10 October, 2025

      Under section 44DA, tax calculation is declared 50% of the annual income of the processional.  

    • HT
      Harsh Tiwari 08 October, 2025

      under section 44AD, tax calculation is declared at 8% of the annual turnover if the transaction is in cash and 6% if there is a digital transaction. 

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