For the financial year starting April 1, 2025, specified professionals earning up to 75 lakh rupees can pay zero tax on a 24 lakh rupee income by utilizing Section 44ADA, which allows taxation on 50% of income, making 12 lakh taxable, which then falls under the tax-exempt limit.
"So first of all if you are a professional and if you are earning a 24 lakh rupees you will pay zero tax. When you mean professional you mean like doctor doctor lawyer you are interior decorator you are a technical consultant. Oh wow. If you fall into this and you are earning your income as a professional income. Okay. Okay. There is a section called 44 ADA. In that you just need to pay tax on 50% of your income. So if you're earning 24 lakh rupees in this financial year which is start from 1 April 25 and your income is 24 lakh rupees you pay 50% which is 12 lakh 12 that is not fully exempt. Interesting. So if you are a professional no tax on 24 lakh rupees of income. Of course, if you are a specified professional and by the way, this is not only up to 24 lakh. If your income is up to 75 lakh rupees, okay, you can take benefit of this section."
