44AD / 44ADA Presumptive Tax Calculator
Presumptive taxation under 44AD and 44ADA
Presumptive taxation lets small businesses and professionals declare income as a fixed percentage of turnover or receipts instead of maintaining full books. 44AD is for eligible businesses; 44ADA is for specified professionals. The calculator above shows your presumptive income.
Section 44AD (business)
Limit ₹2 crore, raised to ₹3 crore if cash receipts are 5% or less. For resident individuals, HUFs and firms (not LLPs).
Section 44ADA (profession)
Limit ₹50 lakh, raised to ₹75 lakh if cash receipts are 5% or less. For legal, medical, engineering, accountancy and other notified professionals.
A worked example
A consultant (44ADA) with ₹40 lakh receipts, all digital: presumptive income = 50% = ₹20 lakh, taxed at slab rates, with no books or audit needed.
Conditions
- You may declare higher income, but not lower without books and audit.
- No further expense deduction — the percentage is deemed after all expenses.
- Advance tax can be paid in one instalment by 15 March.
Frequently asked questions
What is the 44AD limit?
₹2 crore, raised to ₹3 crore if cash receipts are 5% or less.
What is the 44ADA limit?
₹50 lakh, raised to ₹75 lakh if cash receipts are 5% or less.
What income is declared under 44AD?
8% of turnover, or 6% for digital receipts. You may declare more, not less without audit.
What is the 44ADA rate?
50% of gross professional receipts.
Can I claim expenses on top?
No. The percentage is deemed net of all expenses and depreciation.
Source: Income-Tax Act, Sections 44AD and 44ADA (FY 2025-26 / AY 2026-27). Verify with the Income-Tax Department before filing. ComplyKraft is independent; this is not professional advice.