Presumptive Tax Calculator
Estimate your presumptive income at 6% / 8% / 50% and the income tax you owe under the new regime — no books, no audit.
Applicable for FY 2026-27 (AY 2027-28) and FY 2027-28.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
How your tax is computed
Section 44ADFile your presumptive return with a CA
We confirm your eligibility, compute presumptive income and file ITR-4 accurately.
Disclaimer: Indicative estimate for resident individuals opting into presumptive taxation. Actual tax may vary with other income, special-rate income and applicable surcharge. Rates per Finance Act 2025.
Presumptive taxation — 44AD vs 44ADA
Presumptive taxation lets small businesses and professionals declare income as a fixed percentage of turnover — no books of account, no tax audit. Section 44AD is for eligible businesses; Section 44ADA is for specified professionals. Each has its own turnover cap and presumptive rate.
Eligibility & limits
Choose the section that matches your work. Cross the turnover cap and you must maintain regular books and get a tax audit — the presumptive scheme no longer applies.
| Who | Resident individual / HUF / firm |
| Turnover cap (cash ≤ 5%) | ₹3,00,00,000 |
| Turnover cap (otherwise) | ₹2,00,00,000 |
| Presumptive income | 6% digital + 8% cash |
| Books / audit | Not required |
| Who | Doctors, CAs, lawyers, architects, consultants… |
| Receipts cap (cash ≤ 5%) | ₹75,00,000 |
| Receipts cap (otherwise) | ₹50,00,000 |
| Presumptive income | 50% of gross receipts |
| Books / audit | Not required |
Benefits of going presumptive
No books of account
You are relieved from maintaining detailed books under Section 44AA and from a tax audit under 44AB, saving compliance cost and effort.
Simple ITR-4 filing
Presumptive taxpayers file the short ITR-4 (Sugam) — declare turnover and presumptive income; no profit-and-loss or balance sheet detail is required.
Advance tax in one go
Instead of four instalments, the entire advance tax can be paid by 15 March of the financial year — one simple deadline.
5-year lock-in
Once you opt in under 44AD, staying in for 5 consecutive years keeps the benefit. Opting out early bars you from 44AD for the next 5 years.
Questions people ask
Short answers on Presumptive Tax Calculator. Tap a question to open it.
01How does section 44AD work?
A resident individual, HUF or partnership firm running an eligible business can declare income at 8% of turnover, or 6% on receipts through banking channels or digital modes. No books of account or audit are then required, and no further expense deduction is allowed.
02What is the turnover limit for 44AD?
₹2 crore, raised to ₹3 crore where cash receipts do not exceed 5% of total turnover. Cash receipts include cheques and drafts that are not account payee.
03How is section 44ADA different?
It applies to specified professionals — legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration and others notified. Income is declared at 50% of gross receipts, with a limit of ₹50 lakh, raised to ₹75 lakh where cash receipts are within 5%.
04Can I declare less than the presumptive rate?
Yes, but then you must maintain books and get them audited if your total income exceeds the basic exemption limit. That is the trade-off the scheme is built around.
05What happens if I opt out of 44AD?
If you declare under 44AD and then opt out in a later year, you cannot return to the scheme for the next five assessment years, and audit and bookkeeping requirements apply throughout that period.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.