Presumptive Tax Calculator
Work out the tax on the income of a freelancer, a professional or a small business under the presumptive schemes 44ADA, 44AD and 44AE. It checks the turnover limit (₹50 lakh or ₹75 lakh for professionals, ₹2 or ₹3 crore for businesses, depending on your cash share), applies the 87A rebate and compares the new and old regimes.
Your result
Old regime would be ₹2,73,000 (your choice: ₹1,09,200). Your choice is cheaper. Business and professional income can leave the new regime only once (Form 10-IEA).
Rates and limits are those for FY 2026-27 (tax year 2026-27 under the Income-tax Act 2025), checked on 17 October 2026: slabs as in the Union Budget 2026 (unchanged). Section numbers such as 44AD, 44ADA, 87A and 80C are the familiar Income-tax Act 1961 numbers; the 2025 Act, in force from 1 April 2026, renumbers them. Figures assume the taxpayer is under 60 (senior citizens have higher old-regime limits). 44ADA is open to resident individuals and partnership firms (not LLPs); 44AD is also open to HUFs. The higher turnover limits (₹75 lakh, ₹3 crore) need cash receipts and cash payments of 5% or less. If you opt out of 44AD within 5 years you cannot use it again for the next 5 years. This is a calculator, not tax advice. Your facts may differ, so confirm anything you file with your CA.
BillForge tracks every receipt and shows your turnover against the 44ADA and 44AD limits all year.
BillForge creates GST invoices with the tax already worked out — gap-free Rule 46 numbering, GSTR-1 & 3B export, TDS records. Free for 3 months, no card needed. Your CA should still review what you file.
Start free for 3 monthsFrequently asked questions
Who can use Section 44ADA?
Resident individuals and partnership firms (not LLPs, and not HUFs) earning from specified professions such as law, medicine, engineering, architecture, accountancy, interior decoration, technical consultancy and film or IT services. Gross receipts must not be above ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less of the total.
What profit do I declare under 44ADA and 44AD?
Under 44ADA you declare at least 50% of gross receipts as profit. Under 44AD you declare at least 6% of turnover received digitally and 8% of turnover received in cash. You may declare more, never less, if you want to avoid books of account and a tax audit.
When is advance tax due for presumptive taxpayers?
In one instalment, by 15 March of the financial year, if your tax for the year is ₹10,000 or more. Missing it costs interest under section 234C.
What if my receipts go above the limit?
Then you cannot use 44ADA or 44AD for that year. You need regular books of account under section 44AA and, above the audit limits, a tax audit under 44AB.
Can I choose the old regime?
Yes. People with business or professional income can opt out of the new regime once by filing Form 10-IEA, and can return to the new regime later only on a one-time basis. The calculator shows both so you can compare.