Finance

Presumptive Tax Calculator (44AD/44ADA)

Calculate tax under presumptive taxation scheme (Section 44AD/44ADA) for small businesses and professionals.

02,00,00,000

Presumptive Taxation Eligibility:

  • 44AD: Turnover up to ₹2 crore (business)
  • 44ADA: Gross receipts up to ₹50 lakh (professionals)
  • No need to maintain books of accounts
  • Advance tax in one installment by Mar 15

Total Tax Payable

₹4,57,600

Deemed profit
50%
Taxable income
₹25,00,000
Section
44ADA

How it works

Gross receipts₹50,00,000
Deemed profit (50%)₹25,00,000
Tax calculated on₹25,00,000

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 rates

How 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.

Frequently asked questions

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