Small businesses file under section 44AD and professionals under section 44ADA. In the Income-tax Act, 2025 both — along with section 44AE for goods carriages — become a single provision: section 58.
Quick answer: the mapping
| Income-tax Act, 1961 | Subject | Income-tax Act, 2025 |
|---|---|---|
| 44AD | Presumptive income for small business | 58 |
| 44ADA | Presumptive income for professionals | 58 |
| 44AE | Presumptive income for goods carriages | 58 |
| 44AA | Maintenance of books of account | 62 |
| 44AB | Tax audit | 63 |
| 44B / 44BB / 44BBA / 44BBB / 44BBC / 44BBD | Non-resident presumptive schemes | 61 |
The Income-tax Act, 2025 received Presidential assent on 21 August 2025 and takes effect from 1 April 2026. The Income-tax Act, 1961 continues to govern every tax year up to 31 March 2026, and all assessments, appeals, penalties and prosecutions relating to those years are completed under the old Act by virtue of the repeal and savings provision in section 536. The mapping on this page is drawn from the section-wise concordance published with the Act, including the corrigenda notified in the Gazette on 3 September 2025.
What the 1961 provision did
The Income-tax Act, 1961 had three separate presumptive sections for residents: 44AD for eligible businesses, 44ADA for specified professions and 44AE for goods carriages, each with its own eligibility test, presumptive rate and consequences of opting out.
Where it sits in the Income-tax Act, 2025
Section 58 of the Income-tax Act, 2025 is headed “Special provision for computing profits and gains of business or profession on presumptive basis”. It carries all three schemes in one section. The non-resident presumptive schemes are gathered separately in section 61, which absorbs sections 44B, 44BB, 44BBA, 44BBB, 44BBC and 44BBD.
What actually changed
- One section, three schemes. Business, profession and goods carriage presumptive taxation are now sub-parts of section 58 rather than separate sections.
- Non-resident presumptive taxation is consolidated too, into section 61.
- Books and audit renumber alongside: maintenance of books that was section 44AA is now section 62, and tax audit that was section 44AB is now section 63.
- The audit penalty follows. Failure to get accounts audited is section 446 (old section 271B), and failure to keep books is section 441 (old section 271A).
What to do about it
- Update ITR working papers and client advisories to cite section 58 for tax year 2026-27 onwards.
- Tax audit applicability memos should refer to section 63, not 44AB.
- Where a client is considering opting out of presumptive taxation, read section 58 in full — the lock-in and consequences are inside the single section now.
The sections around it in the new Act
Renumbering is easier to absorb in context. The table below lists the neighbouring provisions of the Income-tax Act, 2025 with the 1961 sections each of them carries forward, so you can see where this provision sits and what moved with it.
| New section (2025) | Provision | Corresponding 1961 section(s) |
|---|---|---|
| 58 | Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents | 44AD, 44ADA, 44AE |
| 59 | Computation of royalty and fee for technical services in hands of non-residents | 44DA |
| 60 | Deduction of head office expenditure in case of non- residents | 44C |
| 61 | Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents | 44B, 44BB, 44BBA, 44BBB, 44BBC, 44BBD |
| 62 | Maintenance of books of account | 44AA |
| 63 | Tax Audit | 44AB |
How to read a section mapping
- A corresponding section is not always an identical section. Where several 1961 sections map to one new section, conditions that used to sit apart are now read together.
- Where one 1961 section maps to several new sections, the old provision was split, and each new section carries only part of what you used to cite.
- Some new sections have no 1961 equivalent at all — the registered non-profit code in sections 332 to 355 is the largest example.
- Always cite by year. The Act that applies is decided by the tax year in question, not by the date you are writing on.
This page is a structural mapping guide, not tax advice. A corresponding section is not always an identical section — several provisions were merged, split or re-worded when they were carried over. Always read the actual text of the new section before relying on it, and check for later amendments, rules and CBDT notifications.