44ADA Presumptive Tax Calculator
Compare presumptive taxation (50% deemed profit) with actual books for freelancers and professionals in India.
What is Section 44ADA?
Section 44ADA is a simplified scheme for specified professionals such as doctors, lawyers, architects, engineers, accountants and consultants. You declare at least 50% of your gross receipts as profit and do not need to maintain detailed books or prove expenses. The new Income-tax Act 2025 carries this scheme forward under a different section number, so check the current text when you file.
Who can use it
- A resident individual, HUF or partnership firm (not an LLP) in a specified profession.
- Gross receipts up to ₹50 lakh, or up to ₹75 lakh if cash receipts are 5% or less of the total.
Example
A freelancer with ₹25 lakh in receipts is deemed to earn ₹12.5 lakh. If real expenses are only ₹6 lakh, actual profit would be ₹19 lakh, so presumptive taxation is cheaper. If real expenses are ₹18 lakh, actual books give a lower profit but bring record-keeping and possible audit requirements. Use the calculator to compare.
Things to remember
- Once you opt in, you generally must stay in the scheme for several years, or face restrictions if you leave.
- You can declare more than 50% if your profit is higher.
- See the advance tax calculator for payment dates and the income tax calculator for salaried income.
General information, not tax advice. Verify rules and limits on the Income Tax Department website or with a chartered accountant.
Frequently asked questions
Do I need to keep books under 44ADA?
Not detailed books. You still need bank records, invoices and your return filing.
Can freelance software developers use 44ADA?
Technical consultancy and similar specified professions generally qualify. Whether your work qualifies depends on its nature, so confirm with a professional.
Is GST separate?
Yes. GST registration depends on your turnover and is separate from income tax.
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Last reviewed: October 2026. Results are estimates, not financial advice.