In Budget 2023, the Finance minister has introduced new threshold limits for 44ADA of the Income Tax act, 1961.
Section 44ADA is applicable to professionals like doctors, lawyers engineers etc. Under this threshold limit has been increased from 50 lakhs to 75 lakhs per annum.
Persons opting under 44ADA are required to declare profits of an amount equal to 50% of turnover as profits and gains from profession.
This new threshold limit shall be applicable from 1st April 2024.