What is 44AD Section about ?

Section 44AD is about Presumptive Taxation Scheme. Income computed as per section 44AD (i.e., @ 8% of turnover or gross receipts of the eligible business, for the previous year) will be net income for the business covered under this scheme. From the net income computed as above, an assessee is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation).

Who can opt for this scheme?

This scheme can be adopted by eligible resident individuals, resident Hindu Undivided Families (HUFs) and resident partnership firms. However, limited liability partnership (LLP) firms are not allowed to adopt this scheme. The condition for opting this scheme is that your turnover should be less than Rs 1 crore. As per Budget 2016, from the next fiscal year, this limit has been increased to Rs 2 crores. It means now, small businesses having a turnover of less than Rs.2 crores can avail the benefit of PTS.