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Section 44ADA Tax Calculator 2026

Estimate your taxable income under the presumptive taxation scheme for specified professionals in India.

Last updated: May 2026

₹

Total money received from clients/profession.

Rent, staff, utilities, travel, etc.

Only 50% of receipts will be taxed.

Taxable Income

₹ 0

Calculated via Section 44ADA

Gross Receipts:₹ 5,000,000
Effective Profit %:50%
Pro Rule: Section 44ADA is a gift for Doctors, Engineers, Lawyers, and Freelancers. You don't need to maintain detailed books of accounts if you opt for this.

What is Section 44ADA?

Section 44ADA is a presumptive taxation scheme for Small Professionals in India. It aims to reduce the compliance burden and simplify tax filing for professionals like Doctors, Engineers, Lawyers, Architects, Accountants, and Technical Consultants.

Under this scheme, you don't need to maintain detailed books of accounts or get them audited. Instead, the government assumes that 50% of your gross receipts is your profit, and you pay tax only on that amount.

How to use this calculator

  1. 1
    Gross Receipts — Input the total amount you received from your professional services during the financial year.
  2. 2
    Actual Expenses — Optionally enter what you actually spent on your business to see if 44ADA is truly better for you.
  3. 3
    Toggle Presumptive — Switch on Section 44ADA to see your taxable income drop to 50% of your receipts.
  4. 4
    Check Threshold — Ensure your total receipts are below ₹75 Lakhs (or ₹50 Lakhs if more than 5% is cash).

Formula & example

Taxable Income = Gross Receipts × 50%

50%= The fixed profit ratio assumed by the Income Tax Department for professionals.
Receipts Limit= ₹75 Lakhs for FY 2024-25 onwards (provided cash receipts are ≤ 5%).
Deductions= Under 44ADA, you cannot claim any further business expenses or depreciation.

Example: Freelance Software Developer earning ₹40 Lakhs.

  • Gross Receipts: ₹40,00,000
  • Actual Expenses (Laptop, Rent, etc.): ₹5,00,000
  • Actual Profit: ₹35,00,000
  • 44ADA Taxable Profit: ₹20,00,000 (Huge savings!)

Benefits

No Bookkeeping

Save time and money by not having to maintain receipts for every small expense.

Huge Tax Savings

If your actual profit margin is high (e.g. 80-90%), paying tax on only 50% is a major win.

Audit Exemption

Stay under the radar and avoid complex tax audits required for regular businesses.

Use cases

IT Freelancers

Software consultants working for US/Europe clients from India.

Doctors & Medics

Private practitioners with minimal overheads but high consultation fees.

Creative Professionals

Designers, writers, and artists who work independently.

Frequently asked questions

Who is eligible for Section 44ADA?+

Individuals and Partnership firms (excluding LLPs) engaged in professions like Legal, Medical, Engineering, Architectural, Accountancy, Technical Consultancy, or Interior Decoration.

Can I claim 80C deductions with 44ADA?+

Yes! Presumptive taxation only replaces business expenses. You can still claim personal deductions like 80C (PPF, LIC), 80D (Health Insurance), etc.

What if my actual profit is less than 50%?+

If you want to declare a profit lower than 50%, you MUST maintain books of accounts and get them audited by a Chartered Accountant.

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