Side Income via Apps? 44ADA Cuts Your Tax by 50%

If you earn freelance or professional income from apps or gigs and your annual receipts are under ₹75 lakh, Section 44ADA lets you declare just 50% of that income as taxable profit — no books, no audit, less tax.

Here's what happened: Section 44ADA allows eligible professionals earning up to ₹75 lakh annually to declare 50% of gross receipts as taxable profit without maintaining detailed account books.. The scheme covers a defined list of professionals under Section 44AA(1) — including doctors, lawyers, engineers, architects, and technical consultants — plus app-based and gig professionals in eligible categories.. From FY 2023-24, the eligibility threshold was raised from ₹50 lakh to ₹75 lakh in gross annual receipts, bringing a larger pool of side-income earners within the scheme's reach..

What you should do: Check whether your profession appears in the Section 44AA(1) list — if it does and your annual receipts are under ₹75 lakh, you likely qualify for 44ADA this ITR season.. Compare your actual deductible expenses against the flat 50% presumptive deduction — opt for 44ADA only if your real expenses are less than half your income, otherwise regular filing saves more.. File using ITR-4 before July 31 to claim presumptive taxation — if you opt in, pay any remaining advance tax liability by March 15 next year to avoid Section 234B/234C interest..

If you opt into 44ADA, you cannot claim additional deductions like depreciation or home-office expenses on top of the 50% flat relief — the presumption is final and all-inclusive.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.