Calculator · TY 2026-27
Presumptive Tax Calculator: 50% for Professionals, 8%/6% for Business
Enter your receipts and how much of them arrive digitally, and see your presumed profit, whether you're inside the eligibility ceiling, and the tax under both regimes, plus the one advance-tax date the scheme leaves you.
Doctors, lawyers, CAs, architects, engineers, IT consultants and other specified professions (old Sec 44ADA).
Keep cash within 5% and the eligibility ceiling rises from ₹50 lakh to ₹75 lakh.†
Your presumed taxable profit under the 44ADA scheme is
₹15,00,000
Tax on the presumed profit, both regimes
₹1,09,200
7.3% of presumed profit
₹2,73,000
18.2% of presumed profit
No standard deduction here: that belongs to salary. Presumptive income is business income, taxed at slab rates after the rebate.
Advance tax: one instalment, 15 March
Presumptive taxpayers skip the four-date calendar: pay 100% of the year's tax (₹1,09,200 on these inputs, new regime) by 15 March. Miss it and interest runs at 1% for 1 month under the old 234C machinery.
When books and audit become mandatory
- Declare less than the presumed 50% while your total income exceeds the basic exemption: books of account plus a tax audit, that year.
- Cross the ₹75 lakh ceiling† and the scheme simply stops covering you.
Assumes all income is from this profession; salary, interest and capital gains would stack on top. † Enhanced ceilings, the 5% cash condition and the 2025-Act section numbers (58/62) are pending CA verification against the Gazette text. See every assumption.
How presumptive taxation works
The deal: instead of proving your actual profit with books and an audit, the law presumes a fixed slice of your receipts is profit and taxes that. Professionals (the old 44ADA): 50% of gross receipts. Small businesses (the old 44AD): 8% of cash turnover and 6% of digital turnover. Declare the presumed figure (or more, if your real profit is higher) and the books-and-audit machinery leaves you alone.
The ceilings, and the digital condition:professionals qualify up to ₹50 lakh of receipts, businesses up to ₹2 crore. Since the Finance Act 2023, keeping cash receipts within 5% raises those ceilings to ₹75 lakh and ₹3 crore (†). The condition is strict: 94% digital gets the enhanced limit, 6% cash doesn't. For a professional between ₹50 lakh and ₹75 lakh, how clients pay you decides whether the scheme exists for you at all.
Tax on the presumed profit:ordinary slab rates, both regimes, with no standard deduction (that belongs to salary). The new regime's rebate means a business with presumed profit inside ₹12 lakh, which is ₹2 crore of fully digital turnover at 6%, can owe nothing at all.
The exits are guarded: declare less than the presumed rate and you must keep books and get audited (if your income tops the basic exemption). Businesses that opt out within 5 years of opting in are locked out of the scheme for 5 years. Cross the ceiling and the scheme simply stops applying from that year.
Worked example: a consultant bills ₹30,00,000 in the year, all of it received by bank transfer. Cash share 0% keeps the enhanced ₹75 lakh ceiling in play, and ₹30 lakh is well inside it. Presumed profit = 50% × ₹30,00,000 = ₹15,00,000. Tax on that: ₹1,09,200 under the new regime (₹1,05,000 of slab tax plus 4% cess) and ₹2,73,000 under the old regime with no deductions. Advance tax: the full amount by 15 March. The calculator above shows the same figures for these inputs.
This calculator assumes:
- You're a resident individual (or partnership firm other than LLP, for the business scheme) in an eligible profession or business. Commission, brokerage and agency businesses are outside the old 44AD; LLPs are outside both.
- All your taxable income comes from this profession or business. Salary, interest and capital gains would stack on top of the presumed profit and change both regime bills.
- Old-regime figures use the below-60 slab set, applying the deductions you enter at face value.
- The digital share you enter reflects receipts realised digitally by the return-filing due date, which is what the enhanced-limit condition actually tests.
- Enhanced ceilings, the 5% cash condition and the 2025-Act section numbers (58/62) are pending CA verification against the Gazette text (†).
Presumptive tax FAQs
Can I deduct my actual expenses on top of the presumed rate?
No. The presumed profit is deemed to already absorb every business expense: rent, staff, software, depreciation, all of it. That's the bargain: no books, no expense proofs, but no itemising either. What you can still claim are the personal Chapter VI-A deductions (80C, 80D, NPS) under the old regime, since those aren't business expenses. If your real costs run well past 50% of receipts, presumptive taxation overtaxes you and regular books may be worth the compliance.
What happens if my actual profit is lower than the presumed rate?
You may declare the lower real profit, but the concession dies: you must maintain books of account and get a tax audit if your total income exceeds the basic exemption. For a business under the old 44AD there's a second sting: dropping out within 5 years of opting in bars you from the scheme for the next 5 tax years. The scheme is designed to punish cherry-picking good years.
Who counts as a professional for the 50% scheme?
The specified professions from the old Section 44AA list: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, and notified ones including film artists and authorised representatives. Software developers and IT consultants generally fit under technical consultancy. A freelance designer billing ₹40 lakh fits; a trader or shop owner doesn't (that's the business scheme), and commission agents and brokers are excluded from both.
Which ITR form do I file, and do I still need any records?
ITR-4 (Sugam) for presumptive income, one of the simplest forms in the system. No books of account in the 44AA sense, but keep the raw evidence of your receipts: bank statements, invoices, GST returns if registered. The presumed rate applies to gross receipts, and if the department later shows your receipts were higher than declared, the concession doesn't protect the difference.
What are Sections 58 and 62 of the Income-tax Act 2025?
The successors to 44AD and 44ADA respectively: Section 58 carries the small-business scheme and Section 62 the professionals' scheme, per the ministry's mapping. The rates and limits carried over unchanged. We flag both numbers with a dagger until our CA verifies them against the Gazette text, because early third-party mappings of the new Act have contained errors.
How does advance tax work on presumptive income?
One instalment instead of four: 100% of the year's tax by 15 March. Miss it and interest runs at 1% a month for one month under the old 234C machinery, plus the usual 234B clock if you carry the shortfall past 31 March. The one-shot deadline is easy to forget precisely because nothing else in the scheme demands attention during the year; put it in your calendar.