Can a freelancer with foreign clients use 44ADA?

Yes, if the work is a specified profession or notified profession, gross receipts are within the limit and you are a resident. Foreign clients don't change eligibility.

Do I need to maintain books under 44ADA?

Not the detailed books required under Section 44AA, but you should keep invoices and bank records to support your receipts.

Is GST separate from presumptive tax?

Yes. Presumptive taxation is an income tax concept. GST registration depends on your turnover and type of supply — services above ₹20 lakh, or any export of services if you want to export without paying IGST under LUT.

Can I rely on this calculator's result for filing?

Use it as a planning estimate. The final figure depends on the tax year's rules and your exact documents, so a CA should review it before you file or pay.

Does the calculator store my data?

No. The calculation runs in your browser and nothing you type is saved. If you want a CA to review it, share your documents through our checklist-led process.

Income Tax calculator

Presumptive Tax (44ADA/44AD)

Presumptive taxation lets small businesses and professionals declare a fixed percentage of turnover as profit and skip detailed books and audit. Professionals under Section 44ADA declare 50% of gross receipts (limit ₹75 lakh if cash receipts are within 5%, else ₹50 lakh). Businesses under Section 44AD declare 6% of digital and 8% of cash turnover (limit ₹3 crore if cash receipts are within 5%, else ₹2 crore).

44ADA professionals: 50% deemed profit
44AD business: 6% digital / 8% cash
Advance tax: One instalment, 15 March

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Presumptive Tax Calculator (44ADA / 44AD)

Estimate tax for professionals and small businesses under presumptive scheme.

Presumptive

Choose scheme

Section 44ADA — Professionals

Doctors, CAs, lawyers, engineers, architects, etc. 50% of gross receipts deemed income. Max turnover ₹75L.

Section 44AD — Small Business

Traders and small businesses. 8% (non-digital) / 6% (digital) of gross receipts. Max turnover ₹3Cr.

Gross receipts / turnover (₹)

Other income (salary, interest, etc.) (₹)

Deemed income (50%)

₹15,00,000

Total taxable income

₹15,00,000

Tax (new regime slab)

₹1,05,000.00

Total tax incl. cess

₹1,09,200.00

Uses new regime slabs (FY 2025-26) for estimation. 8% presumption applies; for digital receipts under 44AD, the rate is 6%. If opting out of presumptive, books of accounts must be maintained.

Presumptive schemes compared

Scheme	Who	Turnover limit	Deemed profit
44ADA	Doctors, lawyers, CAs, engineers, architects, consultants, designers, IT and other specified professionals	₹75 lakh (cash ≤ 5%), else ₹50 lakh	50% of gross receipts
44AD	Resident individuals, HUFs and firms (not LLPs) in eligible businesses	₹3 crore (cash ≤ 5%), else ₹2 crore	6% of digital, 8% of cash turnover
44AE	Goods carriage owners with up to 10 vehicles	No turnover limit	₹1,000 per tonne per month (heavy) or ₹7,500 per vehicle per month

Conditions to watch

You can declare higher profit than the presumptive rate, but not lower without audit
Opting out of 44AD in a later year locks you out for the next five years
Pay all advance tax by 15 March
File ITR-4 (or ITR-3 if you have other income ITR-4 doesn't allow)
Freelancers in IT and design usually fall under 44ADA as specified professions

Worked example: freelance developer under 44ADA

1Gross receipts ₹40,00,000, all by bank transfer.
2Deemed profit at 50% = ₹20,00,000 (no expense proof needed).
3New regime tax on ₹20 lakh ≈ ₹2,00,000 + 4% cess.

Tax ≈ ₹2.08 lakh — paid by 15 March as a single advance tax instalment.

Official sources

incometaxindia.gov.in

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