<s>[INST] What is the meaning of presumptive taxation scheme? [/INST] As per sections 44AA of the Income-tax Act, 1961, a person engaged in business or profession is required to maintain regular books of account under certain circumstances. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, sections 44ADA, sections 44AE., Section 44BB and Section 44BBB​

A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account.

​​For small taxpayers, the Income-tax Act, 1961 has framed presumptive taxation schemes as given below:
•        Section 44AD        :  Computation of income on estimated basis in the case of taxpayers [being a resident individual, resident Hindu undivided family or resident partnership firm (not being a limited liability firm] engaged in certain business subject to certain conditions.

•        Section 44ADA        :  Computation of professional income on estimated basis for assessee being a resident in India and engaged in a profession referred to in section 44AA(1) subject to certain conditions.

•        Section 44AE        : Computation of income on estimated basis in the case of taxpayers (being an Individual, HUF, AOP, BOI, Firm, Company, Co-operative society or any other person may be resident or non-resident) engaged in the business of plying, leasing or hiring goods carriages, subject to certain conditions.

•        Section 44B        : Taxation of shipping profits derived by a person being a non-resident in India, subject to certain conditions.

•        Section 44BB        :  Computation of taxable income of a person being a non-resident (may be an India citizen or a foreign citizen) from activities connected with exploration of mineral oils, subject to certain conditions.

•        Section 44BBA        :  Computation of income in respect of foreign airlines, subject to certain conditions.

•        Section 44BBB        :  Computation of profits and gains of foreign companies engaged in the business of civil construction, subject to certain conditions. </s>