What is Presumptive Tax?
Presumptive taxation allows eligible businesses and professionals to pay tax on a deemed profit percentage instead of actual profits. This simplifies compliance - no need to maintain detailed books or get accounts audited.
Formula
Presumptive Taxation Rules:
Section 44AD (Business):
Deemed Profit = 6% of Turnover (digital)
= 8% of Turnover (cash)
Limit: Turnover up to ₹2 crore
Section 44ADA (Professionals):
Deemed Profit = 50% of Gross Receipts
Limit: Gross receipts up to ₹50 lakh
Tax = Calculated on deemed profit as per slab ratesHow to use this calculator
Enter your gross receipts or turnover, select the applicable section (44AD for businesses, 44ADA for professionals), and choose your tax regime. The calculator shows your tax liability.