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Presumptive Tax Calculator (44AD / 44ADA)

Work out your presumptive income under Section 44AD (business) or 44ADA (professionals).

⚡ Quick answer

Small businesses can declare income at 8% of turnover (6% for digital receipts) under Section 44AD, and eligible professionals at 50% of gross receipts under Section 44ADA — without maintaining detailed books. This calculator computes your presumptive income and the minimum you must declare.

How it’s calculated

  • Section 44AD (business): presumptive income is 8% of turnover, or 6% for receipts through banking / digital channels. Turnover limit ₹2 crore (₹3 crore if cash receipts are ≤ 5%).
  • Section 44ADA (specified professionals): presumptive income is 50% of gross receipts. Limit ₹50 lakh (₹75 lakh if cash receipts are ≤ 5%).
  • You may declare a higher income than the presumptive rate, but not lower without a tax audit.
  • Advance tax under presumptive schemes is payable in a single instalment by 15 March.

Frequently asked questions

What is the presumptive rate under 44AD?

Income is presumed at 8% of turnover, reduced to 6% for the portion of turnover received through banking or digital modes. You can declare more, but declaring less requires audited books.

Who can use Section 44ADA?

Specified professionals — such as legal, medical, engineering, architecture, accountancy, technical consultancy and interior decoration — with gross receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%).

What are the turnover limits?

For 44AD the limit is ₹2 crore, raised to ₹3 crore if cash receipts do not exceed 5% of turnover. For 44ADA it is ₹50 lakh, raised to ₹75 lakh on the same 5% cash condition.

Do I need to maintain books under presumptive taxation?

No detailed books or tax audit are required if you declare income at or above the presumptive rate and stay within the turnover limits.

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Presumptive Tax Calculator

Digital receipts are presumed at 6% (cash at 8%).
Presumptive income₹0
Effective rate0%
Indicative estimate for general guidance only, based on current rules. Please confirm with a qualified Chartered Accountant before acting. Updated for FY 2025-26 (AY 2026-27).
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