Section 44ADA: How freelancers and professionals can legally pay tax only on 50% of their total income

Section 44ADA allows eligible professionals to pay tax on 50% of their gross receipts as taxable income, treating the rest as a deemed expense deduction. The scheme applies to specified professionals with receipts up to ₹50 lakh, extendable to ₹75 lakh if cash receipts are within 5%.