Answer

1. F

   Facts

   The limit is ₹50 lakh, raised to ₹75 lakh if cash receipts are within 5% of total receipts. Foreign payments through bank, PayPal, Payoneer or Wise are non-cash, so most foreign-client freelancers get the ₹75 lakh limit.

2. P

   Provisions and law

   • Sec 44ADA, Income-tax Act 1961 (now Sec 58, Income-tax Act 2025)Resident professionals with receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%) can declare 50% of receipts as income
   • Sec 44AB, Income-tax Act 1961 (now Sec 63, Income-tax Act 2025)Tax audit if business turnover exceeds ₹1 crore (₹10 crore if cash receipts and payments are each within 5%), or professional receipts exceed ₹50 lakh
3. A

   Analysis

   Example: receipts of ₹68 lakh, all through banks; this is within ₹75 lakh, so Sec 44ADA applies and income is ₹34 lakh. At ₹80 lakh, you must keep books and, since professional receipts exceed ₹50 lakh, get a tax audit. Track receipts monthly so you know where you stand.

4. C

   Conclusion

   1. 1Total all receipts for the year in rupees
   2. 2Check cash receipts are within 5%
   3. 3Compare with ₹75 lakh
   4. 4If over, plan for books and audit

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.