Presumptive Tax Calculator (44AD / 44ADA)
For freelancers and small businesses: what the presumptive schemes declare, and what that simplicity costs.
Your numbers
Nothing you type here leaves your device as you work. Saving is the only thing that sends it anywhere, and only when you ask.
₹20 lakh
Cash at or under 5% of the total unlocks the higher ceiling.
Optional — shows what the presumptive route costs you if your real expenses are higher.
₹ MoneyLingo · moneylingo.in
Presumptive Tax Calculator (44AD / 44ADA)
Worked out on 13/8/2026
| Which scheme? | section44ADA |
|---|---|
| Annual gross receipts | 2000000 |
| Received in cash | 0 |
| Your actual expenses | 0 |
My scenarios (0/10)
Snapshots of your inputs, so you can flip between them — “20 years at 9%” against “15 years at 9.5%”. Stored in this browser only, no account needed.
50% of receipts
- Tax on that, new regime
- ₹0
- Scheme ceiling
- ₹75,00,000
- Eligible?
- Yes
Worth knowing
- Advance tax still applies to presumptive income. Under section 44AD and 44ADA the whole liability is payable in one instalment by 15 March, and missing it attracts interest.
What this means
- Section 44ADA presumes profit at 50% of gross receipts for specified professions — including software, technical consultancy, design, accountancy, law and medicine.
- The other 50% is treated as your expenses, whether or not you actually spent it.
- The ceiling that applies to you is ₹75,00,000, because cash receipts are 0.0% of the total — at or under 5%, so the higher limit applies.
- Under a presumptive scheme you do not have to maintain books of account or get them audited, which is the main reason people use it.
Questions people actually ask
- Is 44ADA always better for a freelancer?
- Not always. It declares 50% of receipts as profit whether or not your actual expenses were higher. If they were, you declare more profit than you made. The calculator shows both figures so you can see the trade-off — and there is a five-year lock-out if you opt out of 44AD later.
Where these numbers come from
Every rate this tool uses, its source, and the date a human last checked it against that source.
- Union Budget 2026-27; slab structure unchanged from FY 2025-26 · checked 2026-04-05
- Income-tax Act — standard deduction for salaried taxpayers, new regime · checked 2026-04-05
Salaried taxpayers and pensioners only. Not available against business or freelance income.
- Rebate under s.87A, new regime · checked 2026-04-05
Applies to total income AFTER the standard deduction, which is why a salary of ₹12.75 lakh can still pay nil tax.
- Rebate under s.87A, new regime · checked 2026-04-05
- Surcharge rates, new regime. The 37% band does not apply under the new regime. · checked 2026-04-05
- Deduction against family pension, new regime · checked 2026-04-05
- Old regime slabs, unchanged since FY 2014-15 · checked 2026-04-05
- Standard deduction for salaried taxpayers, old regime · checked 2026-04-05
- Rebate under s.87A, old regime · checked 2026-04-05
- Rebate under s.87A, old regime · checked 2026-04-05
- Surcharge rates, old regime · checked 2026-04-05
- Basic exemption limit, resident senior citizen, old regime · checked 2026-04-05
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