Any resident individual; resident Hindu Undivided Family and resident Partnership Firm (not LLP) whose total turnover/ gross receipts for the year don’t exceed INR 2 Crores are eligible to opt for the presumptive taxation scheme covered u/s 44AD of the Income Tax Act.

Notably, presumptive taxation scheme u/s 44AD is applicable to all the businesses except the following listed ones –

1. Business of plying or hiring or leasing of goods;

2. Agency business;

3. Business earning income either from Commission or Brokerage;

4.Professions as referred under section 44AA(1) [i.e., legal profession; medical profession; engineering profession; architectural profession; accountancy profession; technical consultancy profession; interior decoration profession or any other notified profession].

For ready reference, the following table summarizes the list of businesses/ professions, along with the relevant ITR business code, who cannot opt for presumptive taxation scheme u/s 44AD –

List of Businesses/ professions who cannot opt u/s 44AD ITR business code
Computer and related services
Software development 14001
Other software consultancy 14002
Data Processing 14003
Database activity and distribution of electronic content 14004
Other IT enabled services 14005
BPO services 14006
Maintenance & repair of office, accounting and computing machinery 14008
Health Care Services
General hospitals 18001
Speciality and super speciality hospitals 18002
Nursing homes 18003
Diagnostic centres 18004
Pathological laboratories 18005
Medical clinics 18010
Dental Practice 18011
Ayurveda Practice 18012
Unani Practice 18013
Homeopathy Practice 18014
Nurses or physiotherapists or other para-medical Practitioners 18015
Veterinary hospitals and practice 18016
Medical education 18017
Medical research 18018
Practice of alternative medicine 18019
Other healthcare services 18020
Professions
Legal profession 16001
Accounting, book-keeping and auditing profession 16002
Tax consultancy profession 16003
Architectural profession 16004
Engineering and technical consultancy 16005
Fashion designing profession 16007
Interior decoration 16008
Photography profession 16009
Business & management consultancy activity 16013
Culture and sport
Individual artists (excluding authors) 20010
Literary activity 20011
Other cultural activities 20012
Others
Secretarial activities 16018
Medical profession 16019
Film artist 16020
General Commission Agent 9005

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