Tax

What is the new section number for section 44ADA under the Income-tax Act, 2025?

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 30 October 2026
Reading time: 7 min read

Short answer

For income earned from 1 April 2026, section 44ADA is replaced by section 58(2), Table serial number 3, of the Income-tax Act, 2025.¹² The deemed profit stays at 50% of gross receipts.² The limit stays at ₹50 lakh, or ₹75 lakh where cash receipts are within 5%.² Section 44ADA still applies to income earned up to 31 March 2026.³

Applies to	Governed by	Deadline	Penalty	Last verified
Income earned 1 April 2025 to 31 March 2026	Income-tax Act, 1961, section 44ADA³⁴	Not applicable	Not applicable	28 October 2026
Income earned from 1 April 2026 (tax year 2026-27)	Income-tax Act, 2025, section 58(2), Table row 3¹²	Non-audit return by 31 August after the tax year¹	Not applicable	28 October 2026
Declaring less than 50% with income above the basic exemption limit	Section 58(3), with sections 62 and 63²	Not applicable	Books and tax audit become mandatory²	28 October 2026

Many invoices, CA checklists and online calculators still say "section 44ADA". That number belongs to the Income-tax Act, 1961, which was repealed on 1 April 2026.³ The same presumptive scheme for professionals now lives in a different place in the Income-tax Act, 2025.

For how the scheme works (eligibility, worked tax examples, when not to use it), see the main guide on section 44ADA for freelancers. Facts here are as of October 2026, and the section numbers are from the Act as amended by the Finance Act, 2026.¹

What is the new section number for section 44ADA?

The new section number for section 44ADA is section 58(2), Table serial number 3, of the Income-tax Act, 2025.¹² Section 58 has a single Table with three rows.²

Row 3 covers: a "specified profession as referred to in section 62(4)" carried on by a "specified assessee".²
Specified assessee: a resident individual or a resident firm other than a limited liability partnership (LLP).²
How to write it: "section 58(2), Table: Sl. No. 3", "section 58(2) row 3", or "section 58 (presumptive tax for professionals)" are all understood ways to cite the same provision.¹²
How the Act cites it: the Act cross-refers to rows as "section 58(2) (Table: Sl. No. 1 or 3)", for example in the advance tax provision.¹

Who does section 58(2) row 3 apply to?

Section 58(2) row 3 applies to a resident individual or a resident firm other than an LLP that carries on a specified profession under section 62(4), for income earned from 1 April 2026.¹²

Entity type	Applicable	Why	Best for
Resident individual in a specified profession	Yes	A specified assessee under row 3²	Freelance developers, engineers, accountants
Resident firm other than an LLP	Yes	A specified assessee under row 3²	Partnership practices
LLP	No	Excluded from the specified assessee definition²	Not applicable
Business that is not a specified profession	Row 1 instead	Row 1 covers an eligible business²	Businesses outside section 62(4)

Whether your work counts as a specified profession under section 62(4) is the question that decides if row 3 applies at all.¹ That is a judgement on facts, so confirm it with a chartered accountant (CA) before relying on it.

How do you find which section number applies to a year?

You find which section number applies to a year by checking when the income was earned, because the section number depends on that date and not on when you file.³

Find when the income was earned: up to 31 March 2026, or from 1 April 2026.³
Use section 44ADA for FY 2025-26: income earned from 1 April 2025 to 31 March 2026 falls under the 1961 Act.³
Use section 58(2) row 3 from tax year 2026-27: income earned from 1 April 2026 falls under the 2025 Act.¹³
Map the related sections: use the old-to-new table below.¹
Confirm the profession: check section 62(4) with a CA.¹

The table follows CBDT's transition FAQs.³

Income earned	Governing law	Year label	Presumptive section for professionals	Best for
1 April 2025 to 31 March 2026	Income-tax Act, 1961	Assessment year 2026-27	Section 44ADA	Returns for FY 2025-26
1 April 2026 to 31 March 2027	Income-tax Act, 2025	Tax year 2026-27	Section 58(2), Table row 3	Advance tax and returns for tax year 2026-27

CBDT's transition FAQs confirm there is no missing or overlapping year: FY 2025-26 income is assessed in assessment year 2026-27 under the 1961 Act, and income from 1 April 2026 is assessed for tax year 2026-27 under the 2025 Act.³

Which old and new sections apply around section 44ADA?

The sections an Indian freelancer, consultant or small agency typically meets around section 44ADA have new numbers under the 2025 Act. Each 2025 Act section in the table was checked against the Act text as amended by the Finance Act, 2026.¹

Topic	Income-tax Act, 1961	Income-tax Act, 2025	Best for
Presumptive tax, professions	44ADA⁴	58(2), Table row 3²	Specified professionals
Presumptive tax, business	44AD¹	58(2), Table row 1²	Eligible businesses
Books of account	44AA⁵	62¹	Record keeping
List of specified professions	44AA(1) and CBDT notifications⁵	62(4)¹	Checking eligibility
Tax audit	44AB⁵	63¹	Audit cases
Books and audit if you declare less than 50%	44ADA(4)⁴	58(3)²	Professionals declaring lower profit
Advance tax instalments and due dates	211⁵	408¹	Advance tax planning
Interest for default in advance tax	234B⁵	424¹	Late or short advance tax
Interest for deferment of advance tax	234C⁵	425¹	Late instalments
Return due dates	139(1)⁵	263(1)¹	Filing deadlines
Books prescribed for professionals	Rule 6F, Income-tax Rules, 1962⁷	Rule 46, Income-tax Rules, 2026⁶	Books for professionals
Tax audit report	Rule 6G, Income-tax Rules, 1962⁷	Rule 47 and Form No. 26, Income-tax Rules, 2026⁶	Audit report filing

Three things around section 58 changed in ways a freelancer will notice.¹

Professions moved into the Act: section 62(4) now names information technology and company secretary alongside legal, medical, engineering, architectural, accountancy, technical consultancy and interior decoration.¹ See section 62 specified professions.
Year label: tax year 2026-27 means the financial year 1 April 2026 to 31 March 2027.³
Return due date: for a non-audit professional, the due date in section 263(1)(c) is 31 August after the tax year, which for tax year 2026-27 is 31 August 2027.¹

For the forms that changed number, see Form 44 replacing Form 67 and Form 41 replacing Form 10F.

What happens if you quote the wrong section number?

If you quote the wrong section number, the mismatch matters most in your income-tax return, advance tax workings and letters about your tax status, which are the three places section numbers matter.¹³ An export invoice needs no income-tax section number.

Income-tax return: the form notified for the year will use the correct Act. For tax year 2026-27, the e-filing portal's downloads page lists ITR forms only for assessment year 2026-27 as of 28 October 2026;⁸ see which ITR form freelancers file.
Advance tax workings: the single 15 March instalment for presumptive taxpayers is now in section 408(2).¹ See advance tax for freelancers.
Letters to banks, platforms or clients: for income from 1 April 2026, quote section 58(2) of the Income-tax Act, 2025.¹³

How is presumptive income calculated under section 58(2) row 3?

Presumptive income under section 58(2) row 3 is calculated as 50% of gross receipts, or a higher profit you claim, the same as under section 44ADA.²⁴

Deemed profit: 50% of gross receipts, or more if you claim a higher figure.²
Receipts limit: ₹50 lakh, or ₹75 lakh where cash receipts do not exceed 5% of gross receipts.²
No further deductions: no loss, allowance or deduction is allowed against the presumptive income (section 58(4)).²
Deemed depreciation: the written-down value of assets is calculated as if depreciation had been claimed every year (section 58(6)).²
Cash test: a cheque or bank draft that is not account payee counts as cash (section 58(9)).²

For example, say an IT consultant receives ₹30 lakh from foreign clients by bank transfer in tax year 2026-27: the presumptive income under row 3 is 50% of ₹30 lakh, or ₹15 lakh.² Foreign client payments that arrive by bank transfer or through a payment platform are not cash, so most exporters of services fall under the ₹75 lakh limit if their other receipts are also digital.²

What are the common mistakes with the new section number for section 44ADA?

The common mistakes with the new section number for section 44ADA are quoting 44ADA for tax year 2026-27, quoting 58 for FY 2025-26, and treating LLPs as eligible.²³

44ADA for tax year 2026-27: income from 1 April 2026 falls under section 58(2) row 3.¹³
58 for FY 2025-26: income earned up to 31 March 2026 still uses section 44ADA.³
LLPs: an LLP is not a specified assessee.²
Old audit references: the audit section is now 63, and the audit report is under rule 47 and Form No. 26.¹⁶

How did we verify this?

We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.

Frequently asked questions

What is section 44ADA called now?+

Section 44ADA is now called section 58(2) of the Income-tax Act, 2025, Table serial number 3, for tax year 2026-27 onwards.¹² Row 3 covers a specified profession referred to in section 62(4), carried on by a resident individual or a resident firm other than a limited liability partnership.²

Did the 50% presumptive rate change when the section number changed?+

The 50% presumptive rate did not change when section 44ADA became section 58(2) row 3. Row 3 of the section 58(2) Table still deems 50% of gross receipts, or a higher profit you claim, as income.² The ₹50 lakh and ₹75 lakh receipts limits also carried over unchanged from section 44ADA.²

Can I still write section 44ADA in my return for FY 2025-26?+

A freelancer can still write section 44ADA in the return for FY 2025-26. Income earned from 1 April 2025 to 31 March 2026 is governed by the Income-tax Act, 1961 and assessed in assessment year 2026-27, so the old section number is correct for that return, according to CBDT's transition FAQs.³

Which section replaced 44AD?+

Section 44AD was replaced by section 58(2), Table serial number 1, of the Income-tax Act, 2025.² Row 1 deems 6% of digital receipts and 8% of other receipts as profit for an eligible business, and applies to income earned from 1 April 2026, while row 3 covers specified professions.²

What is the new section for the 44ADA books and audit condition?+

The 44ADA books and audit condition is now section 58(3) of the Income-tax Act, 2025.² If you declare less than the deemed profit and your total income exceeds the basic exemption limit, you must keep books under section 62 and get an audit under section 63.² The old provision was section 44ADA(4).⁴

Do I need to put an income-tax section number on an export invoice?+

An export invoice does not need any income-tax section number. Section numbers matter in your income-tax return, your advance tax workings and letters to banks, platforms or clients about your tax status.¹³ For income from 1 April 2026, quote section 58(2) of the Income-tax Act, 2025 in those documents.¹

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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