This CA says you can earn ₹24 lakh and pay nothing in tax. Here is the legal catch

Can you really earn ₹24 lakh a year and pay zero income tax? Chartered accountant Meenal Goel says yes and it’s 100% legal under a little-known tax hack most professionals are missing.

Goel is talking about Section 44ADA — a provision in the Income Tax Act tailored for professionals like doctors, lawyers, architects, consultants, and CAs.

The benefit? You’re taxed on only 50% of your professional income.

“If you earn ₹24 lakh in a year from professional income, your taxable income is just ₹12 lakh,” she explained. 

“And with the ₹12 lakh exemption, you’ll practically pay ZERO tax!”

This hinges on two key rules. First, your gross receipts must not exceed ₹75 lakh — a limit raised from ₹50 lakh, provided at least 95% of those receipts are digital. Second, you must fall within the “specified professions” recognized under the Act.

Here’s the math:

• Gross Receipts: ₹24,00,000
• Deemed Taxable Profit (50%): ₹12,00,000
• Tax Liability: ₹63,000
• Section 87A Rebate: ₹63,000
• Net Tax Payable: ₹0

And unlike other deductions, there’s no need to prove expenses. “Section 44ADA assumes 50% expenses automatically,” Goel noted. “You only need to report receipts.”

However, she reminded professionals that GST registration becomes mandatory once receipts cross ₹20 lakh, regardless of their income tax setup.

The regime applies only to individuals and partnership firms — not LLPs — and only to those in eligible professions. For those who qualify, it eliminates the need to maintain books or undergo audit, as long as you stick to the presumptive method.

Bottom line? “This is a golden tax hack you should know,” Goel wrote — especially for professionals operating lean and clean.