Section 44ADA Tax Calculator

Section 44ADA applies to resident individuals and HUFs carrying on specified professions — doctors, lawyers, architects, chartered accountants, engineers, interior designers, film artists, company secretaries, and IT consultants. Gross receipts must not exceed Rs 75 lakh in FY 2025-26.

You must declare at least 50% of gross professional receipts as your taxable income. If your actual profit is less than 50%, you can still opt for 44ADA and declare exactly 50% — avoiding the need for books of accounts and tax audit.

Under 44ADA, no separate deductions for business expenses are allowed — the 50% presumptive rate already covers all expenses. However, you can still claim deductions like 80C, 80D, NPS under the Old Regime on top of the presumptive income.

Professionals opting for Section 44ADA are required to pay advance tax only in a single installment — 100% of the advance tax liability by March 15. The quarterly installments of June, September, and December are not applicable.

Yes, all calculations happen entirely in your browser. No data is sent to any server.

If your actual expenses exceed 50% of receipts, you are running at a loss under normal accounting. Under 44ADA, you cannot declare less than 50% — so you would declare 50% as taxable income even if actual profit is lower. If you believe actual profit is below 50%, you can opt out of 44ADA, maintain books, and get a tax audit (mandatory when receipts exceed Rs 50 lakh and declared profit is below 50%).

Yes. Unlike 44AD (business presumptive scheme), professionals under 44ADA are not locked in for 5 years. You can switch between 44ADA and regular taxation year by year based on what is more beneficial. However, switching out of 44AD triggers a 5-year exclusion period for business taxpayers.

Section 44AD is for small BUSINESSES (traders, manufacturers, eligible firms): presumptive income of 8% of turnover (6% for digital receipts), turnover limit ₹2 crore (₹3 crore when 95%+ receipts are digital), and opting out locks you out of the scheme for 5 years. Section 44ADA is for specified PROFESSIONALS: presumptive income of 50% of gross receipts, limit ₹50 lakh (₹75 lakh when 95%+ receipts are digital), and no multi-year lock-in. Filing under the wrong section is a costly, common mistake — a professional filing under 44AD would understate income and invite scrutiny, while a business filing under 44ADA would pay tax on 50% instead of 8%.

GST and 44ADA are entirely separate compliances. 44ADA is an income tax provision — it does not exempt you from GST. If your professional services receipts exceed Rs 20 lakh (Rs 10 lakh in special category states), GST registration is required regardless of 44ADA status.