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Even so, to supply aid to little taxpayers with the wearisome job of keeping guides of account and having them audited, income tax law has launched the concept of presumptive taxation plan.

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No, it is not Obligatory to decide Portion 44AE, it is optional, if you opt for regular provisions, Then you definitely may need to maintain books of accounts and have precisely the same audited.

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In the above mentioned circumstance, Mr Ram can go with presumptive taxation When the tax is paid out on 50% of gross receipts. Hence, Ram can opt to pay out tax underneath the presumptive plan of taxation beneath area 44ADA. 

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Part 44ADA was released to extend the plan of simplified presumptive taxation to specified experts. Before, the presumptive plan of tax was readily available only to smaller businesses.