📞 +91 88022 54567 WhatsApp ✉ gaurav@skagandassociates.com
Mon – Sat | 10:00 AM – 7:00 PM
SKAG and Associates
Chartered Accountants

Presumptive Tax Calculator (44AD/44ADA)

Presumptive income and tax for small businesses and professionals — Section 44AD/44ADA and Section 58.

The Presumptive Tax Calculator works out income under Section 44AD (small businesses: 8% of turnover, 6% for receipts through banking or digital modes) and Section 44ADA (specified professionals: 50% of gross receipts) for FY 2025-26, and under Section 58 of the Income-tax Act, 2025 from Tax Year 2026-27. It checks the Rs 2 crore / Rs 3 crore and Rs 50 lakh / Rs 75 lakh limits, computes tax under the new and old regimes, and shows the single advance tax instalment due by 15 March.

Use the Presumptive Tax Calculator (44AD/44ADA)

Presumptive Income and Tax

Total turnover / receipts₹ 0
Cash share / applicable limit—
Presumptive income₹ 0
Total income (new regime)₹ 0
Tax, new regime (incl. rebate, surcharge, cess)₹ 0
Total income (old regime)₹ 0
Tax, old regime₹ 0
Advance tax by 15 March₹ 0
Enter your turnover or gross receipts.
Firms (other than LLPs) can also use Section 44AD / 44ADA, but pay tax at a flat 30% plus cess; this tool computes tax for individuals and HUFs only. Special-rate income such as capital gains is not covered.

Generated on 26 September 2026 at skagandassociates.com — for information only, not professional advice

Income Tax Act 2025 transition: This tool covers both FY 2025-26 (AY 2026-27), under the Income Tax Act, 1961 (old section numbers such as 80C, 87A, 192), and Tax Year 2026-27, under the Income Tax Act, 2025 and Income Tax Rules, 2026 in force from 1 April 2026. Key changes: 80C→123, 87A→156, 192→392; Form 16→130; TDS uses payment codes 1001-1067. View full mapping →

Estimate presumptive income and tax for a resident individual or HUF. Business (Section 44AD; Section 58 Table Sl. No. 1 from Tax Year 2026-27): 8% of turnover, or 6% of turnover received by account payee cheque, bank transfer or other prescribed electronic modes; turnover limit ₹2 crore, or ₹3 crore where cash receipts do not exceed 5% of the total. Profession (Section 44ADA; Sl. No. 3): 50% of gross receipts; limit ₹50 lakh, or ₹75 lakh where cash receipts do not exceed 5%. Rates and limits are the same in both years.

Key conditions

  • Who can use it: resident individuals, HUFs and partnership firms (not LLPs). Section 44ADA covers legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and other notified professions (for example, film artists, company secretaries and information technology).
  • Not for: commission or brokerage income, agency business, or a person who has claimed certain profit-linked deductions; goods carriages are under Section 44AE (Section 58 Sl. No. 2), which this tool does not cover.
  • 6% rate: applies to receipts by account payee cheque, bank draft, bank transfer or prescribed electronic modes received during the year or by the return due date.
  • No books or expenses: the presumptive figure is deemed to cover all business expenses; no further deduction for rent, salary or depreciation is allowed.
  • Lower profit: declaring less than the presumptive rate, when total income exceeds the basic exemption limit, requires books of account and a tax audit. Under Section 44AD, opting out within five years of opting in bars the scheme for the next five years.
  • Advance tax: the whole amount can be paid in one instalment by 15 March (Section 211(1)(b); Section 408(2) of the 2025 Act). The return is filed in ITR-4 if total income is up to ₹50 lakh and other conditions are met.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Frequently Asked Questions

What is presumptive income under Section 44AD?
Under Section 44AD, an eligible resident individual, HUF or partnership firm (not an LLP) can declare 8% of business turnover as income, or 6% of the turnover received by account payee cheque, bank transfer or other prescribed electronic modes, without keeping detailed books. The turnover limit is Rs 2 crore, raised to Rs 3 crore where cash receipts do not exceed 5% of total receipts. From Tax Year 2026-27 the same scheme is in Section 58, Table Sl. No. 1, of the Income-tax Act, 2025.
What is the limit for Section 44ADA for professionals?
Section 44ADA lets resident individuals and partnership firms (not LLPs) in specified professions, such as legal, medical, engineering, architecture, accountancy, technical consultancy and interior decoration, declare 50% of gross receipts as income. The limit is Rs 50 lakh, raised to Rs 75 lakh where cash receipts do not exceed 5% of gross receipts. From Tax Year 2026-27 it is Section 58, Table Sl. No. 3, of the Income-tax Act, 2025.
When is advance tax due under the presumptive scheme?
Taxpayers who opt for Section 44AD or 44ADA can pay the whole advance tax in one instalment on or before 15 March of the financial year, instead of four instalments. The same applies under Section 408(2) of the Income-tax Act, 2025 from Tax Year 2026-27. Advance tax is needed only if the tax for the year after TDS and TCS is Rs 10,000 or more; a shortfall attracts interest under Section 234C.
Can I claim expenses or declare a lower profit under the presumptive scheme?
No further deduction for expenses such as rent, salary or depreciation is allowed, because the presumptive rate is deemed to cover them. You may declare a higher profit. If you declare a profit lower than the presumptive rate and your total income exceeds the basic exemption limit, you must maintain books of account and get them audited. Under Section 44AD, opting out within five years of opting in also bars the scheme for the next five years.
Which ITR form is used under Section 44AD or 44ADA?
For FY 2025-26, a resident individual, HUF or firm (other than an LLP) with presumptive business or professional income and total income up to Rs 50 lakh generally files ITR-4 (Sugam), provided the other conditions are met, such as not being a company director and not holding unlisted equity shares. Otherwise ITR-3 (individuals and HUFs) or ITR-5 (firms) is used.

Due in the next 30 days

Income tax
  1. Tax Audit Report (Form 3CA/3CB with 3CD for FY 2025-26; Form 26 from Tax Year 2026-27)In 4 days · Income tax
  2. TDS / TCS deposit (e-Pay Tax, Challan ITNS 281) for SeptemberIn 11 days · Income tax

Full compliance calendar → Statutory dates, which can be extended by notification. General information only.

Published by SKAG and Associates, Chartered Accountants, New Delhi · Proprietor CA Gaurav Singh (ICAI M.No. 539050). General information only, not professional advice.

Other Income Tax Tools

Income Tax Calculator

Compute tax under New and Old regime — FY 2025-26 (AY 2026-27) and Tax Year 2026-27.

Open Tool →

Advance Tax & Interest

Quarterly instalments under Section 211 and 234C interest on instalments already due.

Open Tool →

TDS Calculator

TDS on salary, rent, professional fees, contracts and more.

Open Tool →
All Income Tax Tools →

This website is intended solely for the dissemination of basic information regarding SKAG and Associates and is in compliance with the guidelines issued by the Institute of Chartered Accountants of India (ICAI). It is not intended to be a source of advertisement, solicitation or inducement of professional work. The information provided here is general in nature and should not be construed as professional advice. By using this website, the visitor acknowledges that there has been no advertisement, personal communication, solicitation or inducement of any sort whatsoever from the firm or any of its members.