For Doctors, Lawyers, CAs & Architects
Professional Practice, Zero Tax Stress
Section 44ADA presumptive taxation, professional tax, GST registration, statutory audit, and MSME — CA experts who understand the professional world.
CA/CS
Qualified Team
44ADA
Presumptive Tax Experts
50%
Deemed Expense Deduction
Online
End-to-End Service
✓ Section 44ADA Specialists
✓ Professional Tax Registration
✓ GST for Professionals
✓ Statutory Audit
✓ MSME for Clinics & Firms
Get Your Professional Tax Review
Tell us your profession and income — our CA will advise on 44ADA, GST applicability, professional tax, and the optimal structure for your practice.
What We Do For Professionals
Professional Services — All in One Place
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Annual Filing
ITR Filing Under 44ADA
ITR-4 for professionals opting for Section 44ADA (50% presumptive deduction). ITR-3 for those with detailed P&L. Covers all professional fees, consultation income, and related sources.
File Professional ITR
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GST
GST Registration for Professionals
Mandatory once professional service turnover exceeds ₹20 lakh a year (₹10 lakh in special category states), even for inter-state clients. Healthcare is exempt and advocates’ fees to businesses fall under reverse charge. Includes GSTR-1 and GSTR-3B filing support.
Register for GST
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Audit
Tax Audit (Section 44AB)
Mandatory if professional receipts exceed ₹50 lakh (₹75 lakh under 44ADA where cash receipts are within 5%), or you declare less than 50% under 44ADA. CA-certified audit report (Form 3CB + 3CD; Form No. 26 from tax year 2026-27) filed by September 30.
Book Audit
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MSME / Udyam
MSME Registration for Clinic / Firm
Clinics, law firms, CA firms, and consulting firms qualify for MSME registration. Access priority lending, subsidy schemes, government contracts, and collateral-free credit under the CGTMSE guarantee.
Register MSME
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Planning
Advance Tax & TDS Planning
Compute and pay advance tax in 4 instalments. Track TDS deducted by hospitals, corporates (Section 194J). Reconcile Form 26AS and AIS. Claim all TDS refunds accurately.
Plan Tax
Section 44ADA Eligibility
Presumptive Tax — Who Qualifies?
Section 44ADA applies to specified professionals. Declare 50% of gross receipts as profit — no books, no audit, file simple ITR-4. The limit is ₹75 lakh where cash receipts are within 5% of the total, and ₹50 lakh otherwise.
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Doctor / Surgeon / Dentist
Medical Professionals
Max: ₹75 lakh receipts
Consultation fees, surgery charges, clinic income. OPD receipts, visiting consultant fees from hospitals. Declare 50% as profit.
Learn More
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Advocate / Lawyer / Solicitor
Legal Professionals
Max: ₹75 lakh receipts
Court fees, retainer fees, drafting charges, legal advisory income. All professional fees from clients — 50% deemed profit under 44ADA.
Learn More
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Architect / Civil Engineer
Architects & Engineers
Max: ₹75 lakh receipts
Architectural design fees, structural consultancy, project supervision charges. Interior decoration is also a specified profession in its own right.
Learn More
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CA / CMA / CS
Accountants & CAs
Max: ₹75 lakh receipts
Audit fees, tax filing fees, advisory charges, compliance retainer income. Chartered Accountants, Cost Accountants, Company Secretaries all covered.
Learn More
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IT / Engineering / Management
Technical Consultants
Max: ₹75 lakh receipts
Technical consultancy is a specified profession, and information technology is notified by CBDT. General management or business consultancy is not on the list — check before you opt for 44ADA.
Learn More
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Notified by CBDT
Other Notified Professions
Max: ₹75 lakh receipts
Film artists, company secretaries, authorised representatives, information technology professionals as notified by the Central Board of Direct Taxes.
Learn More
Books of Accounts
Maintain Books or Use Presumptive?
Section 44ADA — Presumptive Scheme (No Books Required)
Declare at least 50% of gross professional receipts as net income. No need to maintain books, no depreciation claimed, no audit required (receipts up to ₹75 lakh if cash is within 5%, otherwise ₹50 lakh). Simply file ITR-4. Ideal for most professionals with limited actual expenses. Choose if: Actual expenses < 50% of income.
Regular Books Method (ITR-3) — Full Accounts Required
Maintain proper books including cash book, journal, ledger. Claim actual expenses: clinic rent, staff salaries, medical equipment depreciation, car (40% business use), professional subscriptions, malpractice insurance. File ITR-3. Tax audit mandatory if receipts exceed ₹50 lakh. Choose if: Actual expenses > 50% of income.
When Books Are Compulsory — Mandatory Books Threshold
Outside 44ADA, doctors, lawyers, CAs, architects, engineers and other specified professionals must keep the books listed in Rule 6F once gross receipts have exceeded ₹1.5 lakh in each of the three preceding years (Section 44AA). Within 44ADA, books and an audit become compulsory if you declare less than 50% as profit and your income exceeds the basic exemption limit. Penalty for non-maintenance: ₹25,000 (u/s 271A). Consult a CA before declaring lower profit.
Opting Out — No 5-Year Lock-In, but Audit
Unlike Section 44AD for businesses, Section 44ADA has no five-year lock-in — you can move between presumptive and regular books from year to year. But in any year you declare less than 50% of receipts as profit and your income exceeds the basic exemption limit, you must keep books and get a tax audit. TaxClue compares both routes each year before you file.
Your Compliance Map
What Applies to a Professional Practice
A doctor, lawyer, CA, architect or consultant in practice deals with far fewer filings than a company — but the ones that apply depend heavily on your profession, your receipts and the state you practise in.
| Obligation | Applies when | Due | Law | Status |
|---|---|---|---|---|
| Income tax returnITR-3 / ITR-4 | Every practising professional with income above the exemption limit, or TDS to claim back | FY 2025-26: 31 Aug 2026 without audit; 31 Oct 2026 with audit | Income-tax Act, 1961, s.139 | Mandatory |
| Presumptive taxationSection 44ADA | Resident in a specified profession; receipts up to ₹75 lakh if cash is within 5%, else ₹50 lakh | Chosen in the return; 50% of receipts (or more) declared as profit | Income-tax Act, 1961, s.44ADA (carried into the 2025 Act) | Recommended |
| Books of accountRule 6F | Not using 44ADA, and receipts above ₹1.5 lakh in each of the three preceding years | Kept through the year; preserved for six years | Income-tax Act, 1961, s.44AA | If applicable |
| Tax auditForm 3CB-3CD | Receipts over ₹50 lakh (over ₹75 lakh for 44ADA with cash within 5%), or profit declared below 50% under 44ADA | 30 September | s.44AB (s.63 of the 2025 Act; Form No. 26) | If applicable |
| Advance tax | Tax for the year after TDS is ₹10,000 or more | 44ADA: 100% by 15 March. Others: 15 Jun, 15 Sep, 15 Dec, 15 Mar | Income-tax Act, 2025, s.408 | If applicable |
| TDS credit checkAIS / Form 26AS | Hospitals, companies or firms deduct TDS on your fees | Before each advance-tax instalment and before filing the return | Income-tax Act, 2025, s.393 | Recommended |
| GST registration | CAs, architects, engineers and consultants with fees over ₹20 lakh; not needed for exempt healthcare or advocates billing only under reverse charge | Within 30 days of crossing the threshold | CGST Act, s.22 | If applicable |
| GST returnsGSTR-1 / GSTR-3B | Every GST-registered practice; QRMP optional up to ₹5 crore | 11th and 20th monthly, or quarterly under QRMP | CGST Act, s.37 / s.39 | If applicable |
| Letter of undertakingLUT | GST-registered and billing overseas clients, to export services without paying IGST | Once a year, before the first export invoice | IGST Act, s.16 | If applicable |
| GST on legal fees you payReverse charge | Your GST-registered practice engages an advocate or law firm | Paid in cash with GSTR-3B for the month | Notification 13/2017-CT(R) | If applicable |
| Professional tax enrolmentPTEC | You practise in a PT-levying state (e.g. Maharashtra, Karnataka, West Bengal); not Delhi, Haryana or UP | As the state sets; maximum ₹2,500 a year | State PT Act; Constitution, Art. 276 | If applicable |
| PT on staff salariesPTRC | You employ staff in a PT-levying state | Monthly or as the state sets | State PT Act | If applicable |
| TDS on payments you make | Your practice was tax-audited last year and pays salary, rent or fees above the thresholds | Deposit by the 7th; statements 31 Jul, 31 Oct, 31 Jan, 31 May | Income-tax Act, 2025, s.393 | If applicable |
| Clinical establishment registration | Doctors and dentists running a clinic, in states that require it | Before the clinic starts; renew as the state requires | Clinical Establishments Act, 2010 or state law | If applicable |
| Bio-medical waste authorisation | Clinics, dental and diagnostic practices generating bio-medical waste | Before operations; from the State Pollution Control Board | Bio-Medical Waste Management Rules, 2016 | If applicable |
| Shop & establishment registration | An office, chamber or clinic with staff, where the state Act covers it | Within the period your state sets after opening | State Shops & Establishments Act | If applicable |
| Udyam registration | A clinic, firm or practice that wants MSME benefits; no government fee | Any time — one online form | MSMED Act, 2006 | Recommended |
Specified professions: legal, medical, engineering, architecture, accountancy, technical consultancy and interior decoration, plus those notified by CBDT (film artists, company secretaries, authorised representatives and information technology). The Income-tax Act, 2025 applies from tax year 2026-27; your FY 2025-26 return and tax audit are still under the 1961 Act.
FY 2026-27 Calendar
Your Year at a Glance
The dates a practising professional works to. Monthly, if GST-registered: GSTR-1 by the 11th and GSTR-3B by the 20th. If you deduct TDS: deposit by the 7th.
- Apr – JunQ1
- Renew your GST LUT for the year, if you bill overseas clients
- Q4 TDS statements for FY 2025-26, if you deduct TDS
- Advance tax — 15% (only if you are not under 44ADA)
- Collect TDS certificates from hospitals and clients for Q4
- Jul – SepQ2
- Q1 TDS statements (Forms 138 / 140 under the 2025 Act)
- ITR-3 / ITR-4 for FY 2025-26, if no tax audit
- Advance tax — 45% cumulative (not under 44ADA)
- Tax audit report, if receipts cross the limit
- Oct – DecQ3
- ITR for audit cases and Q2 TDS statements
- Advance tax — 75% cumulative (not under 44ADA)
- Last date for a belated or revised FY 2025-26 return; GSTR-9 where it applies
- Jan – MarQ4
- Q3 TDS statements
- Advance tax — 100%; 44ADA professionals pay the whole year’s tax now
- Year-end: match receipts with AIS, check the 44ADA limit and cash share
What Goes Wrong
Mistakes That Cost Professionals
Professionals rarely miss big filings — the costs come from a skipped instalment, a limit crossed quietly, or receipts that do not match what clients reported.
Skipping the 15 March instalment
Under 44ADA the whole year’s advance tax is due in one go. Paying it with the return instead attracts interest for every month of delay.
Interest at 1% a monthCrossing the 44ADA limit
A good year takes receipts past ₹75 lakh, or cash above 5% drops the limit to ₹50 lakh, and no audit is done.
0.5% of receipts, up to ₹1.5 lakhDeclaring below 50% without books
Showing lower profit than 44ADA presumes needs books and an audit. Without them the return is exposed to penalties and additions.
₹25,000 for no books + audit penaltyCrossing ₹20 lakh without GST
A CA, architect or consultant who keeps billing past the threshold owes GST on those fees from their own pocket, with interest.
Tax + 18% interest + penaltyReceipts not matching AIS
Hospitals and corporate clients report every fee with TDS. A return showing less invites a mismatch notice; TDS not claimed is lost.
Tax demand + interest on the gapFiling the return late
Beyond the late fee, a professional who files late cannot opt for the old regime that year, and loses any loss carry-forward.
₹5,000 late fee (₹1,000 up to ₹5 lakh income)Working With TaxClue
How It Works — and What We Need
Four steps
- Tell us about your practiceProfession, state, receipts, cash share, staff and whether hospitals or clients deduct TDS.
- Choose the right route44ADA or regular books, new or old regime, GST or not — worked out on your numbers, with a fixed fee quoted upfront.
- We track the yearAIS and TDS checked before 15 March, advance tax computed, GST and PT filed where they apply.
- File with nothing missingReturn, audit report if needed, and a note of every figure the department already has on you.
Documents to keep ready
- PAN, Aadhaar and income tax portal login
- Professional registrationMedical council, Bar council, ICAI or CoA number
- Fee register or receipt book, with cash and digital shown separately
- Bank statements for every account used in the practice
- TDS certificates from hospitals and clients
- Expense billsOnly if you keep regular books
- Investment and insurance proofsIf you choose the old regime
- GST and PT loginsIf registered
Read the Detail
Guides for Professionals
Common Questions
Professional Tax — FAQs
Under Section 44ADA, your deemed profit = 50% of ₹40 lakh = ₹20 lakh — ₹40 lakh is within both the ₹50 lakh and ₹75 lakh limits, so the cash test does not matter here. The ₹75,000 standard deduction applies only to salary, not to professional income. Under the new regime (the default), slab tax on ₹20 lakh for FY 2025-26 is ₹2,00,000, plus 4% cess = ₹2,08,000, with almost no deductions allowed. Under the old regime you can claim Section 80C (up to ₹1.5 lakh), 80CCD(1B) NPS (₹50,000), 80D health insurance and others, but its slabs are steeper — at this income the new regime usually works out lower unless your deductions are large. TaxClue computes both scenarios for you.
Pure medical consultation services by a doctor are generally exempt from GST (exempted under GST Notification 12/2017). However, if a doctor also provides cosmetic surgery (not medically necessary), sells medicines/products, or provides specialised non-clinical advisory services, those may attract 18% GST. Clinical establishments and hospitals providing health care services are also exempt. Consult TaxClue to confirm GST applicability for your specific practice type.
Professional tax (PT) is a state-level tax on salaried individuals and self-employed professionals. It is levied in Maharashtra, Karnataka, West Bengal, AP, Telangana, Tamil Nadu, Gujarat, and a few other states — but NOT in Delhi, UP, Haryana, Rajasthan, etc. The maximum PT that can be charged is ₹2,500 per year (constitutional limit). Professionals must obtain an Enrolment Certificate (PTEC) and pay PT on the dates their state sets; if you employ staff you also need a Registration Certificate (PTRC) to deduct PT from their salaries. Late payment attracts interest and penalties under the state Act.
Legal services by an individual advocate or a firm of advocates to a business entity fall under the reverse charge mechanism (RCM) — the business client pays the 18% GST, not the lawyer. Legal services to individuals for personal matters, and to small businesses within the exemption threshold, are exempt. An advocate whose supplies are all under reverse charge or exempt does not need to register, even above ₹20 lakh. Chartered Accountants, Company Secretaries, Cost Accountants and architects charge 18% under forward charge and must register once fees exceed ₹20 lakh a year. B2B clients prefer GST-registered professionals as they can claim input tax credit on fees paid.
Under Section 44ADA (presumptive scheme), no separate deductions are allowed — the 50% deemed profit is the only deduction from receipts. However, under the regular books method (ITR-3), you can claim: proportionate home rent/depreciation for the consultation room, electricity, internet, and medical equipment. The area used for professional purposes vs personal use ratio must be documented. TaxClue helps maintain proper records and justify the proportionate claim.
The ₹75 lakh limit for 44ADA applies only if cash receipts are 5% or less of your total receipts; otherwise the limit is ₹50 lakh. Cross the applicable limit and 44ADA is not available for that year — you compute actual profit from books, and a tax audit is needed once receipts exceed ₹50 lakh (or ₹75 lakh with cash within 5%). Clinics and chambers that collect fees in cash should track the cash share through the year, not discover it in July.
Payers deduct TDS on professional fees — generally 10%, and 2% on fees for technical services — under Section 194J of the 1961 Act, which moved to section 393 of the Income-tax Act, 2025 from 1 April 2026. That TDS is credited against your tax when you file. Check it in your AIS and Form 26AS before each advance-tax date: if TDS already covers your liability you may owe little or nothing, and any excess comes back as a refund. Report the gross fee, not the amount received after TDS.
The new regime is the default, and its rebate makes income up to ₹12 lakh tax-free for FY 2025-26 and 2026-27. The old regime allows 80C (up to ₹1.5 lakh), 80D, home-loan interest and similar deductions but has steeper slabs. A professional with business income must file Form 10-IEA before the return due date to choose the old regime, and can come back to the new regime only once — after that the choice is locked. We compare both each year before you decide.
Services to a client outside India, paid in foreign exchange, generally qualify as an export of services, which is zero-rated. If you are GST-registered, file a Letter of Undertaking (LUT) each year and bill without GST; you can then claim a refund of input tax credit on your costs. Export fees count towards the ₹20 lakh registration threshold, so a professional with mostly foreign clients can still need a GSTIN.
The presumptive scheme for professionals is carried into the Income-tax Act, 2025 with the same 50% rate and the same ₹50 lakh / ₹75 lakh limits; what changes is the section number and some form names. The new Act applies from tax year 2026-27 (starting 1 April 2026). Your return and any tax audit for FY 2025-26 are still filed under the 1961 Act and Section 44ADA, and the tax audit report moves to Form No. 26 only from tax year 2026-27.
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