Presumptive Tax Calculator

Calculate tax for small businesses (44AD) and professionals (44ADA). Simplified taxation without maintaining books.

Presumptive taxation limits unchanged in Budget 2026.

Business Turnover (Section 44AD)

Cash/Cheque Receipts

Digital/Bank Receipts

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Are you resident in India?

Presumptive income: 8% of cash receipts + 6% of digital receipts. The limit is Rs 2 crore, or Rs 3 crore where cash receipts are within 5% of turnover.

Calculating presumptive tax...

Presumptive Taxation Scheme

Section	For	Limit	Presumptive Rate
44AD	Small businesses	Rs 3 crore turnover	8% cash, 6% digital
44ADA	Professionals	Rs 75 lakh receipts	50% of receipts

Frequently Asked Questions

Who can opt for 44AD?

Resident individuals, HUFs, and partnership firms (not LLPs) with turnover up to Rs 3 crore can opt for 44AD. Professionals like doctors, lawyers, architects cannot use 44AD - they should use 44ADA.

What professions are covered under 44ADA?

Legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, and other notified professions. Film artists and authorized representatives are also covered.

Do I need to maintain books under presumptive taxation?

No, if you declare income at or above the presumptive rate, you don't need to maintain books of accounts. However, you should keep basic records of receipts for your reference.

Statutory basis

This calculator applies the provisions below, read from the enacted text. The rate and threshold that apply depend on the date of the transaction, which the calculator resolves rather than assuming a single year.

s.58, Income-tax Act 2025 — presumptive income for business, goods carriage and profession, from 1 April 2026 source
s.58(2) Table Sl. 1 — business: 6% on banking or online receipts, 8% on the rest; limit Rs 2 crore, or Rs 3 crore where cash is within 5% source
s.58(2) Table Sl. 3 — profession: 50% of gross receipts; limit Rs 50 lakh, or Rs 75 lakh where cash is within 5% source
s.58(11) — confines the scheme to a resident individual, HUF or firm other than an LLP source
ss.44AD, 44ADA and 44AE, Income-tax Act 1961 — govern tax years before 2026-27 source

Last verified against the enacted text on 25 August 2026 .

Content owner: DailyWorks Technologies
Implementation: DailyWorks Technologies engineering
Professional review: Not independently reviewed. Figures are for information and are not a substitute for advice from a qualified tax professional.