India self-employed tax calculator (Section 44ADA presumptive scheme)
Under Section 44ADA an Indian professional declares exactly half of gross receipts as taxable income, keeps no books and faces no audit, and pays new-regime slab tax plus 4% cess on that half.
Worked example: with Annual gross receipts of 3,000,000, this model computes Receipts after tax of 2,890,800. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How section 44ada in India is calculated
Section 44ADA is a bargain made explicit in statute: declare 50% of gross receipts as your profit and the Income Tax Department stops asking questions — no books of account under Section 44AA, no audit under Section 44AB, and a single advance tax instalment due by 15 March instead of four. Whether it is a good bargain depends entirely on whether your real costs are above or below half your receipts.
The scheme is available to specified professionals up to 50 lakh of gross receipts, or 75 lakh where cash receipts stay under 5% of the total — a threshold designed to reward digital payment. On the tax side the new regime is now the default, and the Section 87A rebate wipes out the liability entirely where the presumptive income lands at or below 12 lakh.
Worked example
| Annual gross receipts (INR) | 3000000 |
|---|---|
| Presumptive income (50%) ✓ | 1500000 |
| Slab Tax ✓ | 105000 |
| Section 87A rebate ✓ | 0 |
| Tax + 4% cess ✓ | 109200 |
| Receipts after tax ✓ | 2890800 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How does Section 44ADA work?
You declare 50% of gross professional receipts as taxable income regardless of what you actually spent. The other half is deemed to cover rent, salaries, travel, equipment and depreciation, and you keep no books and face no audit.
What is the limit for 44ADA?
50 lakh of gross receipts, rising to 75 lakh where cash receipts do not exceed 5% of total receipts. Above that the presumptive scheme is unavailable and normal accounting applies.
Do I pay tax at 20,00,000 of receipts?
Under 44ADA the presumptive income is 10,00,000, which sits inside the Section 87A rebate under the new regime, so the liability comes to nil. The rebate is worth up to 60,000 for taxable income up to 12 lakh.
Sources
- Income Tax Department — Presumptive taxation under Section 44ADA · checked 2026-08-22
- Section 44ADA: latest rules for professionals (AY 2026-27) · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 3 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 3 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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