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Section 44ADA Presumptive Tax Calculator

Section 44ADA of the Income Tax Act allows Indian freelance developers, consultants, doctors, and lawyers with receipts up to ₹75 Lakh to declare a minimum 50% profit without maintaining detailed books of accounts. Compare tax liabilities under the New and Old Regimes and check TDS refund eligibility.

प्रोफेशनल आय विवरण (Gross Receipts)

₹

डिजिटल भुगतान पर अधिकतम सीमा ₹75 लाख है (कैश पर ₹50 लाख)।

%

कानूनी न्यूनतम 50% है।

पुराने टैक्स रिजीम हेतु कटौतियां (Old Regime Deductions)
₹
₹

लोकप्रिय उदाहरण (Quick Profiles)

फ्रीलांसर 44ADA टैक्स कैलकुलेटर

अपनी कुल प्रोफेशनल फीस दर्ज करें। 50% मुनाफे के आधार पर न्यू और ओल्ड टैक्स रिजीम की तुलना और टीडीएस रिफंड का सटीक हिसाब देखें।

About This Calculator

Target Audience: Freelancers, software engineers, doctors, lawyers, consultants & CAs

💡 What Does This Calculator Do?

This calculator computes income tax liability for freelancers, software developers, technical consultants, doctors, and lawyers filing under Section 44ADA of the Income Tax Act. It evaluates your 50% deemed taxable profit, compares New and Old Tax Regimes, and checks whether client TDS deductions under Section 194J create an income tax refund.

📋 How to Use It

  1. 1
    Gross Receipts: Enter your total annual professional income up to ₹75 Lakh (for digital receipts).
  2. 2
    Deemed Profit %: Keep the statutory minimum of 50% or enter a higher declared percentage.
  3. 3
    Client TDS %: Select the TDS rate deducted on your client invoices (typically 10% under Section 194J).
  4. 4
    Deductions: Enter Chapter VI-A deductions (Section 80C and 80D) for Old Regime comparison.
  5. 5
    Calculate Tax: Click the button to view the tax breakdown and refund summary.

🧬 The Logic Explained Simply

  • The Concept: Freelancers and independent professionals often spend significant money on travel, software, hardware, and internet without maintaining complex corporate accounts. Section 44ADA presumes that 50% of your gross professional receipts are business expenses and the remaining 50% is your taxable profit, exempting you from formal bookkeeping and tax audits.
  • The Formula:

Presumptive Taxable Profit = Gross Receipts × (Profit Percentage / 100) [Minimum 50%]

Tax under New Regime = Section 115BAC Slab Calculation + 4% Health & Education Cess

Net Tax Payable / Refund = Total Tax Liability - Section 194J TDS Deducted

💡 Real-World Calculation Breakdown

Consider a freelance software developer earning ₹25,00,000 in gross receipts in FY 2025-26 (AY 2026-27), with clients deducting 10% TDS:

  1. 1
    Deemed taxable profit under Section 44ADA (50%) = ₹12,50,000.
  2. 2
    Total TDS already deducted by clients = 10% of ₹25,00,000 = ₹2,50,000.
  3. 3
    Tax calculation under New Tax Regime (Section 115BAC):
  • First ₹3,00,000: Nil
  • ₹3,00,001 to ₹7,00,000 (₹4,00,000 at 5%): ₹20,000
  • ₹7,00,001 to ₹10,00,000 (₹3,00,000 at 10%): ₹30,000
  • ₹10,00,001 to ₹12,00,000 (₹2,00,000 at 15%): ₹30,000
  • ₹12,00,001 to ₹12,50,000 (₹50,000 at 20%): ₹10,000
  • Base Tax = ₹90,000.
  • Health and Education Cess (4%) = ₹3,600.
  • Total Tax Liability = ₹93,600.
  1. 4
    Net settlement with Income Tax Department:

TDS Deducted (₹2,50,000) - Tax Liability (₹93,600) = ₹1,56,400 Refund Due.

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