Hello, I am a freelancer IT Professional from India exporting IT services to a europe based company. If total income for FY26-27 is estimated to be more than Rs. 75 Lakhs, Can 44ADA taxation scheme be used to get a tax relief on 50% on my total income. Is the max limit increased for 44ADA? If not what can I do to reduce tax?
- Section 44ADA Limit: The maximum limit is ₹75 Lakhs (provided cash receipts are $\le 5\%$). If income exceeds ₹75 Lakhs, Section 44ADA cannot be used.
- Alternative: File taxes under regular business income provisions (ITR-3), maintain proper books of accounts, and claim all actual operational expenses and deductions to optimize total taxable income