Now Reading: Presumptive taxation can cut tax for side income from mobile apps
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Presumptive taxation can cut tax for side income from mobile apps
Software engineers earning additional income by developing and selling mobile applications as a side business can opt for the presumptive taxation scheme under Section 44ADA to simplify tax compliance, reports Livemint. Under the scheme, at least 50% of gross professional receipts must be declared as taxable income. If actual income is higher, the taxpayer must declare the higher amount.
The 31 August deadline for filing ITR-4 for AY 2026-27 is approaching for taxpayers using presumptive taxation. Sections 44AD, 44ADA and 44AE offer simplified tax rules for eligible businesses, professionals and goods-carriage operators. Section 44AD covers small businesses with turnover up to Rs 2 crore, Section 44ADA covers specified professionals with gross receipts up to Rs 50 lakh, and Section 44AE covers goods carriage operators owning up to 10 vehicles.
Taxpayers opting for Sections 44AD and 44ADA must pay their entire advance tax liability by 15 March. Livemint advises consulting a qualified tax adviser before filing.
Indian Opinion Analysis
Both sources from Livemint are neutral explanatory guides on presumptive taxation, offering no political framing or editorial stance. The coverage is uniform straight reporting of tax provisions. Readers should note that the scheme's 50% presumptive income rule may not benefit those with low margins, and opting out requires maintaining books and a tax audit. The 31 August ITR-4 deadline is the concrete next step for eligible taxpayers.
Note: This article was published after the stated deadline of 31 July 2026 for non-business filers, so readers should verify current deadlines with a tax adviser.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), livemint.com (2) (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
