Section 44AD / 44ADA Calculator

Calculate presumptive income and tax under Section 44AD (eligible business) and Section 44ADA (professionals) for FY 2026-27 (AY 2027-28). Dual IT Act 1961 / IT Act 2025 references.

⚙️ Scheme Selection

Select Scheme

s.44AD [s.270 IT Act 2025]: Resident individual, HUF or partnership firm (not LLP) in eligible business. Turnover ≤ ₹3 crore (if digital receipts ≥ 95%) or ≤ ₹2 crore. Presumptive income = 8% of gross turnover (6% for digital/banking receipts). No books of account required.

💰 Income Details

Total Gross Turnover / Receipts (₹) *

Digital / Banking Receipts (₹)

Higher rate (6% for digital vs 8% for cash) will be computed

Other Income (₹)

Deductions u/s 80C to 80U (₹)

Available even under presumptive scheme

Age of Assessee

📊

Presumptive Tax Result

Select scheme, enter turnover and click Calculate

About This Tool

The Section 44AD/44ADA Calculator helps eligible taxpayers compute presumptive income and determine whether the presumptive taxation scheme is beneficial compared to regular taxation with actual deductions. Section 44AD applies to small businesses (turnover up to ₹3 crore for cash-limited businesses) — deemed profit is 8% of turnover (6% if digital receipts). Section 44ADA applies to specified professionals (income up to ₹75 lakh for FY 2024-25) — deemed profit is 50% of gross receipts.

How to Use

Select whether you want to compute under Section 44AD (business) or Section 44ADA (profession).
Enter your total turnover or gross receipts for the financial year.
For 44AD: specify what proportion of receipts were through digital/banking channels (6% rate applies; 8% for cash).
Click Calculate — the tool shows the presumptive income, tax payable, and compares it with actual profit-based taxation if you input your actual expenses.

Frequently Asked Questions

Who can opt for Section 44AD?

Any eligible business (except commission agents, transporters, and those declaring losses) with annual turnover up to ₹2 crore (₹3 crore if 95%+ receipts are digital) can opt for Section 44AD.

What professions are covered under 44ADA?

Legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, and other notified professions. Gross receipts must be up to ₹50 lakh (₹75 lakh if 95%+ receipts are digital/non-cash) — Finance Act 2023, w.e.f. AY 2024-25.

If I opt for presumptive, can I claim additional deductions?

No. If you opt for Section 44AD/44ADA, no further deduction is available under Sections 30–38. The deemed profit is the final taxable income from business/profession.

What if my actual profit is higher than the presumptive amount?

If your actual profit exceeds the presumptive percentage, you should declare the higher actual profit. The presumptive scheme only allows you to declare a minimum — you can always declare more.