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Guide · Income Tax

Income Tax for Architects — 44ADA, 194J & GST

How architects are taxed in India: the Section 44ADA presumptive scheme, 10% TDS under 194J, 18% GST on architectural services, the right ITR form and advance-tax rules for FY 2025-26.

Written by
TaxClue Editorial Desk
Updated
18 August 2026
Reading time
5 min
Questions
16 answered
  • Updated for AY 2026-27
  • CA reviewed
  • Presumptive 44ADA
Quick Answer

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.

At a glance

Key Tax Facts for Architects

The parameters that decide how an architect is taxed in India for FY 2025-26 (AY 2026-27).

ParameterPosition for architects
Specified profession?Yes Architecture is listed for professionals
Presumptive schemeSection 44ADA — 50% of gross receipts
44ADA receipt limitUp to Rs75 lakh (Rs50L if cash receipts > 5%)
TDS on architect feesSection 194J — 10% on professional fees
TDS threshold (194J)Rs30,000 per year, per payer
GST on services18% — SAC 9983
GST registration thresholdRs20 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.

The core scheme

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

Gross receiptsRs60,00,000
Deemed income @ 50%Rs30,00,000
Books / auditNot required
Taxable incomeRs30,00,000

Architect earning Rs1.2 crore

Gross receiptsRs1,20,00,000
44ADA available?No — above Rs75L
RequirementActual profit + books
FileITR-3 + audit

✓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
The 5-year 44ADA lock-in

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?

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Fees deducted at source

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.

ParameterDetails
Applicable sectionSection 194J — fees for professional services
TDS rate10% on the professional fee
TDS on the GST component?No deducted on fee before GST
ThresholdRs30,000 per year, per payer
Who must deductCompanies, LLPs, firms, HUFs / individuals under audit — not individuals for personal home construction
Deposit deadline7th of the next month (April for March)
TDS certificateForm 16A, issued quarterly by the deductor
Credit in ITRReflected in Form 26AS / AIS; claimed in your return
TaxClue Insight

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?

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Indirect tax

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.

ServiceSACGST
Architectural design & planning998318%
Project management / site supervision998318%
Interior / landscape design998318%
Export of services (foreign client, LUT)99830% zero-rated

Verify the SAC and rate on the official portal before invoicing.

Return & advance tax

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?

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Sources
  1. Slabs, forms & e-filing: incometax.gov.in
  2. Presumptive scheme: Section 44ADA (Income-tax Act, 2025; earlier 1961 Act)
  3. TDS on professional fees: Section 194J
  4. GST rates & SAC: cbic-gst.gov.in

Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.

People also ask

Questions, answered

Short, direct answers to the 16 questions readers ask most on this topic.

Yes. Architecture is a specified profession, so an architect can opt for Section 44ADA and declare 50% of gross professional receipts as taxable income, provided total receipts do not exceed Rs75 lakh in the year (Rs50 lakh if cash receipts are more than 5% of the total). No books of account or audit are then required.

The limit is Rs75 lakh of gross professional receipts a year, available where cash receipts are 5% or less of total receipts. If cash receipts exceed 5%, the earlier Rs50 lakh limit applies. Beyond the applicable limit the architect must maintain books and file ITR-3, with audit under Section 44AB where applicable.

Take 50% of gross receipts as deemed taxable income, then apply the slab rates. For example, receipts of Rs60 lakh give deemed income of Rs30 lakh, on which tax is computed under the new regime (default) or old regime as chosen. Actual expenses are ignored — the law presumes 50% is profit.

If you use 44ADA and later opt out to declare lower actual profits, you cannot go back to the presumptive scheme for the next five assessment years and must maintain books and get audited during that time. So near the Rs75 lakh threshold, decide carefully before switching.

No separate business expenses can be claimed under 44ADA — the 50% deemed income already accounts for all expenses. If your genuine expenses exceed 50% of receipts, it is usually better to maintain books, declare actual profit and file ITR-3 instead of using the presumptive scheme.

Section 194J applies. Architecture is a professional service, so clients deduct TDS at 10% on the fee under Section 194J (fees for professional services), not the 1–2% contractor rate under Section 194C. TDS is deducted on the fee before GST.

A deductor must deduct 194J TDS once payments to the architect reach Rs30,000 or more in a financial year. The Rs30,000 threshold is per payer for the year, not per bill. Businesses (companies, LLPs, firms, HUFs and individuals under tax audit) must deduct; individuals paying for personal home construction generally need not.

No. TDS under Section 194J is deducted only on the professional fee, not on the GST portion of the invoice, provided the GST is shown separately. So on a bill of Rs1,00,000 fee plus Rs18,000 GST, TDS of 10% is computed on Rs1,00,000.

The deducted TDS appears in your Form 26AS and AIS, and clients issue Form 16A. You claim the full amount as a credit while filing your ITR. Under 44ADA this credit is frequently higher than the final tax, so the excess is refunded.

Yes, once turnover from architectural services crosses Rs20 lakh a year (Rs10 lakh in special-category states), or immediately if you make inter-state supplies. Architectural services are taxed at 18% GST under SAC 9983. Export of services to foreign clients is zero-rated under an LUT.

Architectural, design, project-management and related consultancy services attract 18% GST under SAC 9983. Interior and landscape design provided by the architect are also 18%. Services exported to foreign clients are zero-rated with an ITC refund available under the LUT route.

Yes. A GST-registered architect can claim ITC on GST paid on genuine business inputs such as design software, computer hardware, drafting tools, office rent and stationery, subject to the normal ITC conditions. This is separate from income-tax 44ADA, where no expense claim is allowed.

File ITR-4 (Sugam) if you opt for 44ADA with receipts up to Rs75 lakh. File ITR-3 if receipts exceed Rs75 lakh, you maintain books, or you have capital gains or other business income alongside your practice. A purely salaried architect with no practice income may use ITR-1 or ITR-2.

The new regime is the default for AY 2026-27 and gives nil tax up to Rs12 lakh taxable income via the Section 87A rebate, but no Chapter VI-A deductions. The old regime allows 80C, 80D and similar deductions. If you claim large deductions the old regime can win; otherwise the new regime is usually simpler and cheaper. Compare both before filing.

Architects under 44ADA pay the entire advance tax in a single instalment by 15 March of the financial year, instead of the usual four instalments. Non-payment or shortfall attracts interest under Sections 234B and 234C, so estimate your liability and pay by that date.

A salaried architect is taxed under the head Salary, with a Rs75,000 standard deduction (new regime) and TDS handled by the employer. An independent architect is taxed on professional income, usually under 44ADA, and pays own advance tax. An architect with both salary and practice income reports both heads in ITR-3.