Presumptive tax calculation for freelancers and professionals
Tax filing for professionals and freelancers used to be an administrative nightmare, involving complex record-keeping and audits. Section 44ADA changed that by introducing the Presumptive Taxation Scheme.
Our Section 44ADA Calculator is specialized for the gig economy, helping consultants, doctors, engineers, and creatives calculate their taxable income in seconds using the 50% profit margin rule.
Under Section 44ADA, professionals can declare 50% of their gross receipts as taxable income. The remaining 50% is presumed to have been spent on business expenses like internet, office rent, software, and marketing—no receipts required.
The biggest advantage is the reduction in compliance cost. Instead of hiring an accountant for monthly bookkeeping, you simply sum up your total invoices and file. It's effectively a "flat tax" on half your revenue.
50% Profit Logic
Automatically calculates your taxable income based on the 50% presumptive rate.
Threshold Compliance Check
Flags if your receipts exceed the ₹75 Lakh limit, alerting you to tax audit requirements.
Tax Comparison Mode
Compare 44ADA liabilities under the Old vs New Tax Regime with your presumed income.
Private In-Browser Flow
Your revenue data never leaves your device. No cloud storage, no tracking.
Select your profession from the dropdown.
Enter your Gross Annual Receipts (total amount received from clients).
Add any other income like Interest or Rental Income.
The tool calculates your presumptive income as 50% of receipts.
Select your preferred tax regime to see the final tax payable.
Eliminates the need for tedious bookkeeping.
Reduces tax filing costs for consultants and freelancers.
Provides a massive 50% tax-free buffer for running your professional practice.
Helps you plan advance tax payments throughout the year.
Unlike other websites, we do NOT upload your files to our servers. All processing happens securely inside your device (browser).
No. LLPs (Limited Liability Partnerships) are specifically excluded from the presumptive taxation scheme under Section 44ADA. It is only available to individuals and partnership firms.
No, you can declare more than 50% of your receipts as profit. However, if you want to declare less than 50% profit and your total income exceeds the basic exemption limit, you must maintain books of accounts and get an audit.
Specified professions include Legal, Medical, Engineering, Architectural, Accountancy, Technical Consultancy, Interior Decoration, and any other notified profession (like Information Technology or certain Film Artists).
Yes. Once you calculate your professional income under 44ADA, you can still deduct Chapter VI-A investments (like LIC, PPF, 80D) if you are filing under the Old Tax Regime.
Yes. Professionals opting for Section 44ADA are required to pay the entire amount of advance tax in a single installment on or before March 15th of the financial year.