Use this presumptive tax calculator to work out your declared income and estimated tax under Section 44ADA for professionals and Section 44AD for small businesses. These schemes let you skip detailed books and declare a fixed percentage of your receipts as profit. The figures here are for FY 2026-27 under the new tax regime.
What is presumptive taxation?
Presumptive taxation lets eligible professionals and small businesses declare a set percentage of their receipts as income, instead of maintaining full books and getting them audited. You can always declare more if your real profit is higher.
Section 44ADA for professionals
If you are in a notified profession such as legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, or you are a film artist or an authorised representative, you can use 44ADA. You declare at least 50 percent of your gross receipts as income. The limit is Rs 50 lakh of receipts, raised to Rs 75 lakh if your cash receipts are 5 percent or less of the total.
Section 44AD for businesses
Resident individuals, HUFs and partnership firms (not LLPs) running an eligible business can use 44AD. You declare 8 percent of cash turnover and 6 percent of digital turnover as income. The limit is Rs 2 crore, raised to Rs 3 crore if cash receipts are 5 percent or less.
Advance tax and filing
A big benefit is advance tax: under presumptive schemes you pay the whole advance tax in one go by 15 March, instead of four instalments. You can plan it with our advance tax estimator. You file using ITR-4 Sugam, and you can compare your overall tax with the old vs new regime calculator. If you declare lower than the presumptive rate, you must keep books and get a tax audit. For the official rules, see the income tax e-filing portal.
This is an estimate under the new regime for general guidance and is not tax advice. Surcharge, marginal relief near Rs 12 lakh, and your other income can change the result. Please confirm with a qualified professional.
Frequently asked questions
What is the income percentage under 44ADA?
Professionals under 44ADA declare at least 50 percent of gross receipts as income. You can declare more if your actual profit is higher.
What is the 44ADA limit for FY 2026-27?
Gross receipts up to Rs 50 lakh, raised to Rs 75 lakh if cash receipts are 5 percent or less of total receipts.
How is income calculated under 44AD?
Businesses declare 8 percent of cash turnover and 6 percent of digital or bank turnover as income, within a limit of Rs 2 crore, or Rs 3 crore if cash receipts are 5 percent or less.
When is advance tax due under presumptive schemes?
The full advance tax is payable in a single instalment by 15 March of the financial year.
Which ITR form is used for presumptive income?
ITR-4 Sugam, for total income up to Rs 50 lakh under 44AD, 44ADA or 44AE.
Official reference: Income-tax Act, 2025 (as amended by the Finance Act, 2026), Income Tax Department.