Are Section 44AD and Section 44ADA Safe heaven from Income Tax Scrutiny?

Are Section 44AD and Section 44ADA Safe heaven from Income Tax Scrutiny?

The presumptive taxation scheme (PTS) under Section 44AD and Section 44ADA was introduced to offer relief to small businesses and professionals by allowing them to just declare a specified percentage of their turnover or gross receipts as profit, and they will not be required to maintain books of accounts.

Under Section 44AD, small businesses with a turnover up to Rs 2 crore are allowed to declare profits at 6% and 8% of their turnover. On the other hand, Section 44ADA is for professionals with gross receipts up to Rs 50 lakhs to declare profit at 50% of their turnover.