Section 44AD / 44ADA Calculator
Presumptive income for small businesses and professionals — cash vs digital split included.
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Presumptive income
Enter receipts to see presumptive income.
Common questions
Who is eligible for Section 44AD?
Resident individuals, HUFs and partnership firms (not LLPs) with total turnover up to ₹2 crore in a financial year — extended to ₹3 crore if cash receipts do not exceed 5% of turnover. Not available to those already claiming Section 10A/10AA, agency/commission income, or professionals covered by Section 44ADA.
What is the presumptive income rate?
8% of turnover for cash receipts, or 6% for digital / bank / cheque / online receipts. This is the deemed profit and is taxed as business income. No further deductions for depreciation, expenses or salary to partners are allowed.
What is Section 44ADA?
Section 44ADA applies to specified professionals (CAs, lawyers, doctors, engineers, architects, technical consultants, etc.) with gross receipts up to ₹50 lakh (₹75 lakh if cash receipts ≤ 5%). Deemed profit is 50% of gross receipts.
Can I opt out later?
Yes, but if you opt out of 44AD after opting in, you cannot opt back in for 5 years, and you must maintain full books of accounts and get them audited under Section 44AB if income exceeds the basic exemption limit. Plan carefully before opting out.
Do I still need to file ITR?
Yes. Presumptive taxpayers file ITR-4 (Sugam). It is a simplified return with no need for a P&L or balance sheet, but income under 44AD/44ADA must be disclosed correctly along with any other income.
File ITR-4 Sugam with a CA
We handle presumptive filings end-to-end — including the 5-year lock advisory.