Freelancer Presumptive Tax Calculator (44ADA / 44AD)
Estimate your income tax as a freelancer or small business under presumptive taxation — Section 44ADA (professionals, 50%) or 44AD (business, 6-8%) — with new vs old regime.
Presumptive Tax
₹20 Lakh
Estimated Income Tax
₹0
Presumptive income ₹10,00,000 · net after tax ₹20 Lakh
How It Works
Presumptive taxation lets freelancers and small businesses declare a fixed percentage of their receipts as taxable income — without maintaining detailed books or getting an audit. Section 44ADA covers specified professionals (IT/software, legal, medical, engineering, architecture, accountancy, technical consultancy, interior design and more): you declare 50% of gross professional receipts as income, valid up to ₹75 lakh receipts if cash receipts are 5% or less (otherwise ₹50 lakh). Section 44AD covers eligible businesses: you declare 8% of turnover (or 6% for digitally-received turnover) as income, up to ₹3 crore if cash is ≤5% (else ₹2 crore). The declared presumptive income is then taxed at normal slab rates under your chosen regime. You may voluntarily declare higher actual income. Advance tax for presumptive filers is due in a single instalment by 15 March. This calculator applies the correct presumptive rate and then computes income tax using current FY2025-26 slabs.
Formula
44ADA: presumptive income = 50% of gross receipts (limit ₹75L if cash ≤5%). 44AD: 8% cash / 6% digital of turnover (limit ₹3cr). Then income tax on that presumptive income.
Frequently Asked Questions
Who can use Section 44ADA?
Resident individuals and firms (not LLPs) in specified professions — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, IT/software, authorised representation and film artists — with gross receipts up to ₹75 lakh (if cash ≤5%).
How much income do I declare under 44ADA?
50% of your gross professional receipts. For example, on ₹20 lakh receipts you declare ₹10 lakh as income and pay tax on that. You can declare more if your actual profit is higher.
What is the difference between 44ADA and 44AD?
44ADA is for professionals (50% presumptive income, ₹75L limit). 44AD is for eligible businesses (8% of turnover, or 6% for digital receipts; up to ₹3 crore). 44AD excludes professionals, agencies, and commission/brokerage income.
Do I need to maintain books or get audited?
No — that is the main benefit of presumptive taxation. Within the limits, you skip detailed bookkeeping and audit. If you declare lower than the presumptive rate and exceed the basic exemption, audit and books become applicable.
When is advance tax due for presumptive filers?
Unlike regular taxpayers who pay in four instalments, presumptive taxpayers (44ADA/44AD) pay their entire advance tax in one instalment by 15 March of the financial year.