Income Tax for Architects — Section 44ADA, TDS 194J & GST Guide 2025-26

Updated: 3 June 2026 | Income-tax Act, 2025 | Section 44ADA & 194J & GST SAC 9983

Architects are specified professionals under the Income-tax Act, eligible for presumptive taxation under Section 44ADA — declare 50% of gross professional receipts (up to ₹75 lakh) as net income, with no mandatory audit. TDS is deducted by clients at 10% under Section 194J on payments ≥ ₹30,000. GST at 18% applies on architectural services (SAC 9983), with mandatory registration above ₹20 lakh turnover. File ITR-4 under presumptive scheme or ITR-3 for income above ₹75L.

44ADA

Presumptive scheme: declare 50% of professional receipts as income — no books, no audit needed up to ₹75L.
Architecture is a specified profession. TDS 194J @ 10% deducted by clients. GST 18% on all architectural services.

Key Tax Facts for Architects — At a Glance

Parameter	Details
Specified profession?	Yes — Architecture listed u/s 44AA(1) of Income-tax Act
Presumptive scheme	Section 44ADA — 50% of gross receipts
44ADA receipt limit	Up to ₹75 lakh/year
TDS on architect fees	Section 194J — 10% (professional fees)
TDS threshold (194J)	₹30,000 per year per payer
GST on services	18% — SAC code 9983
GST registration threshold	₹20 lakh annual turnover
ITR form (44ADA)	ITR-4 (Sugam)
ITR form (above ₹75L / non-presumptive)	ITR-3
Advance tax (44ADA)	100% in one instalment by 15 March

Section 44ADA for Architects — How It Works

Section 44ADA allows architects to declare 50% of their professional gross receipts as net taxable income, without maintaining detailed books of accounts. This significantly reduces compliance burden for small to mid-sized practices.

Scenario	Gross Receipts	Income Under 44ADA (50%)	ITR Form
Small practice	₹30 lakh	₹15 lakh (taxable)	ITR-4
Mid-size practice	₹60 lakh	₹30 lakh (taxable)	ITR-4
Near threshold	₹75 lakh	₹37.5 lakh (taxable)	ITR-4
Large practice	₹1.2 crore	Actual profit (books required)	ITR-3 + Audit

TDS under Section 194J on Architect Fees

Parameter	Details
Applicable section	Section 194J — Fees for Professional Services
TDS rate	10% (on full fee amount before GST)
TDS on GST component?	No — TDS is on the base fee only, not on GST portion
Threshold for deduction	₹30,000 per year per architect per payer
Who deducts?	Companies, LLPs, firms, HUF (business use) — not individuals for personal construction
TDS deposit deadline	7th of following month (March: 30 April)
TDS certificate	Form 16A issued quarterly by deductor
Credit in ITR	Schedule TDS — reflected in Form 26AS and AIS

GST on Architectural Services

Service	SAC Code	GST Rate	Note
Architectural design and planning	9983	18%	Residential, commercial, industrial
Structural / engineering consultancy	9983	18%	If provided by architect
Project management / supervision	9983	18%	Site supervision services
Interior design services	9983	18%	Separate contract for interiors
Landscape architecture	9983	18%	Garden/site design
Export of services (foreign client)	9983	0% (Zero-rated)	LUT filing required; ITC refund available

Advance Tax for Architects under 44ADA

Architects under Section 44ADA have a simplified advance tax schedule — only one instalment (unlike 4 instalments for regular taxpayers):

Instalment	Due Date	% of Total Tax
Single instalment (44ADA only)	15 March of the financial year	100%

If advance tax is not paid or under-paid, interest under Section 234B (1% p.m.) and Section 234C applies. Self-assessment tax can also be paid when filing ITR but interest accumulates from April 1.

Frequently Asked Questions

Which ITR form should an architect file — ITR-3 or ITR-4?

ITR form for architects: ITR-4 (Sugam): For architects opting for presumptive taxation under Section 44ADA — professional receipts up to ₹75 lakh/year, declaring 50% as net income. Simplest form — no detailed P&L or balance sheet needed. ITR-3: For architects with professional income above ₹75 lakh (cannot use 44ADA), or those with income from capital gains, house property, other sources along with business income. Also used if the architect maintains books of accounts and audits are applicable. ITR-1 (Sahaj): NOT eligible for architects with professional income. Key rule: Once you choose 44ADA, if you switch out in a later year, you cannot go back to 44ADA for the next 5 years. So choose carefully if income is near the ₹75L threshold.

What is Section 44ADA for architects and how does it work?

Section 44ADA is the presumptive taxation scheme for specified professionals including architects. How it works: If total gross receipts from architectural practice are up to ₹75 lakh in a financial year, the architect can declare 50% of gross receipts as net taxable income — without maintaining books of accounts or getting accounts audited. Example: Architect earns ₹60 lakh in FY 2025-26. Under 44ADA: taxable income = 50% of ₹60L = ₹30 lakh. Tax on ₹30L (old regime): approximately ₹7.5 lakh + surcharge/cess. No need to prove actual expenses — the law presumes 50% is expenses. Important conditions: Must pay advance tax in full by 15 March (single instalment). Cannot claim any additional deductions on business income (HRA, LTA etc. from salary component still claimable if applicable). The ₹75L limit applies to aggregate professional receipts.

What TDS is deducted on architect fees — Section 194C or 194J?

TDS on architectural fees: Section 194J applies — TDS at 10% on fees for professional services (not 194C which is for contractors at 1-2%). When 194J applies: Any client (individual, company, firm, HUF) paying an architect ₹30,000 or more in a financial year must deduct TDS @ 10% under Section 194J (fees for professional services — architecture is specifically covered). TDS threshold: ₹30,000 per year per architect (not per payment). Certificate: Architect receives TDS certificate (Form 16A) and can claim credit in their ITR. If architect gives certificate under Section 197 for nil/lower TDS: client can deduct lower rate. Individuals paying for their personal house construction (not business): still 194J applies if they are covered as tax deductor (most individual residents are not required to deduct TDS for personal work). Companies/businesses: mandatory 194J deduction.

Do architects need to register for GST?

GST for architects: Architects providing services in India must register for GST if annual turnover exceeds ₹20 lakh (₹10 lakh in special category states). GST rate on architectural services: 18% (SAC code 9983 — other professional, technical and business services). Mandatory registration regardless of turnover: if providing inter-state architectural services (project in a different state from registration), or if receiving advance payments exceeding threshold. GST invoicing: raise tax invoice with SAC 9983, 18% GST on each billing milestone. ITC for architect: can claim ITC on office equipment, computer hardware/software, drafting tools, stationery used for business. Reverse Charge Mechanism (RCM): if architect purchases from unregistered vendors above threshold, RCM GST liability may apply. Export of architectural services (foreign clients): Zero-rated — no GST, refund of ITC available under LUT (Letter of Undertaking) route.

How is income tax calculated for an architect with project-based income?

Income tax calculation for architects — project-based vs salary: Salaried architect (employed by a firm): Income taxed as "Salary" — employer deducts TDS. Standard deduction ₹75,000 available. ITR-1 or ITR-2. Freelance / independent architect (Section 44ADA): Up to ₹75L receipts — declare 50% as income. Pay advance tax: 100% by 15 March. File ITR-4. Above ₹75L: maintain books, get audit done under Section 44AB (if applicable), file ITR-3. Mixed income (salary + practice): Separate heads — salary income + professional income. Both reported in ITR-3. Deductions available: Section 80C (₹1.5L), 80D (health insurance), HRA if rented office, home office expenses if separate. Advance tax schedule (44ADA): Only one instalment — 100% by 15 March of FY. Late payment: interest u/s 234B and 234C if advance tax not paid. Record-keeping: even under 44ADA, keep invoices, contracts, GST records for GST purposes (even if not needed for income tax).

Section 44ADA Presumptive Taxation TDS on Professional Fees (194J) GST on Services ITR-4 Filing Guide Advance Tax Calculation Income Tax for Freelancers

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