Architecture is a specified profession, so an architect can use the Section 44ADA presumptive scheme — declare 50% of gross receipts (receipts up to Rs75 lakh) as taxable income, with no books or audit. Clients deduct TDS at 10% under Section 194J on fees above Rs30,000/year, and 18% GST applies on architectural services (SAC 9983) above the Rs20 lakh threshold. File ITR-4 under presumptive, or ITR-3 above Rs75 lakh.
Key Tax Facts for Architects
The parameters that decide how an architect is taxed in India for FY 2025-26 (AY 2026-27).
| Parameter | Position for architects |
|---|---|
| Specified profession? | Yes Architecture is listed for professionals |
| Presumptive scheme | Section 44ADA — 50% of gross receipts |
| 44ADA receipt limit | Up to Rs75 lakh (Rs50L if cash receipts > 5%) |
| TDS on architect fees | Section 194J — 10% on professional fees |
| TDS threshold (194J) | Rs30,000 per year, per payer |
| GST on services | 18% — SAC 9983 |
| GST registration threshold | Rs20 lakh turnover (Rs10L special-category states) |
| ITR form (44ADA) | ITR-4 Sugam |
| ITR form (books / above Rs75L) | ITR-3 |
| Advance tax (44ADA) | 100% in one instalment by 15 March |
Positions reflect the Income-tax Act, 2025 (renumbered but substantively continuing the 44ADA/194J rules), applicable from AY 2026-27. Verify current figures on incometax.gov.in before filing.
Section 44ADA — How Presumptive Taxation Works
Under the presumptive scheme for specified professionals, an architect with gross receipts up to Rs75 lakh a year can declare 50% of receipts as net income — no books of account, no audit, no proving of expenses. The Rs75 lakh limit (raised from Rs50 lakh) applies only where cash receipts are 5% or less of total receipts; otherwise the cap is Rs50 lakh.
Architect earning Rs60 lakh
Architect earning Rs1.2 crore
44ADA suits you if
- Receipts are within Rs75 lakh a year
- Your real expenses are below 50% of receipts
- You want simple, no-audit compliance
- You mostly receive fees digitally (cash ≤ 5%)
Think twice if
- Genuine expenses exceed 50% of receipts
- Receipts are above Rs75 lakh
- You may want to switch schemes soon (5-year lock-in)
- You have large capital gains or other business heads
If you opt out of 44ADA after using it and declare lower profits, you cannot return to the presumptive scheme for the next five assessment years and must maintain books and get audited during that period. Choose carefully if your income is near the Rs75 lakh line.
Not sure whether 44ADA saves you tax?
Get My 44ADA Position →TDS on Architect Fees — Section 194J
Architecture is a professional service, so payments to an architect fall under Section 194J (fees for professional services) at 10% — not Section 194C (contractors) at 1–2%. A business paying an architect Rs30,000 or more in a financial year must deduct TDS.
| Parameter | Details |
|---|---|
| Applicable section | Section 194J — fees for professional services |
| TDS rate | 10% on the professional fee |
| TDS on the GST component? | No deducted on fee before GST |
| Threshold | Rs30,000 per year, per payer |
| Who must deduct | Companies, LLPs, firms, HUFs / individuals under audit — not individuals for personal home construction |
| Deposit deadline | 7th of the next month (April for March) |
| TDS certificate | Form 16A, issued quarterly by the deductor |
| Credit in ITR | Reflected in Form 26AS / AIS; claimed in your return |
Under 44ADA the 10% TDS deducted by clients is often more than your final tax on the deemed 50% income — the excess comes back as a refund. If most of your fees suffer 194J TDS, plan your advance tax so you neither underpay nor lock up cash unnecessarily.
Reconciling TDS credits with your architecture income?
Get TDS & ITR Help →GST on Architectural Services
Architectural services are taxed at 18% GST under SAC 9983. Registration is mandatory once turnover crosses Rs20 lakh (Rs10 lakh in special-category states), or immediately for inter-state supply. Export of architectural services to foreign clients is zero-rated under an LUT, with an ITC refund available.
| Service | SAC | GST |
|---|---|---|
| Architectural design & planning | 9983 | 18% |
| Project management / site supervision | 9983 | 18% |
| Interior / landscape design | 9983 | 18% |
| Export of services (foreign client, LUT) | 9983 | 0% zero-rated |
Verify the SAC and rate on the official portal before invoicing.
Which ITR & When to Pay Advance Tax
The new tax regime is the default for AY 2026-27: nil tax up to Rs4 lakh, then 5%/10%/15%/20%/25% across slabs to 30% above Rs24 lakh, with a Section 87A rebate making tax nil for taxable income up to Rs12 lakh and a Rs75,000 standard deduction (salary). The old regime with Chapter VI-A deductions (80C, 80D etc.) remains optional.
- ITR-4 (Sugam): presumptive under 44ADA, receipts up to Rs75 lakh.
- ITR-3: receipts above Rs75 lakh, books maintained, or income from capital gains / other business alongside practice.
- Advance tax under 44ADA: the whole liability is payable in a single instalment by 15 March; shortfall attracts interest under Sections 234B and 234C.
- Compare regimes with the old vs new regime calculator before you file.
Want your architecture ITR filed correctly under the right regime?
File My ITR →Frequently Asked Questions
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