India Presumptive Tax Calculator

This India presumptive tax calculator works out your deemed business or professional income under the presumptive taxation schemes and the income tax payable on it. Choose section 44AD for small businesses (profit deemed at 8% of turnover, or 6% of receipts through banking or digital channels), section 44ADA for specified professionals such as doctors, lawyers, engineers, architects, accountants and consultants (50% of gross receipts), or section 44AE for owners of up to 10 goods carriages (₹7,500 per vehicle per month, or ₹1,000 per tonne of gross vehicle weight per month for heavy goods vehicles above 12 tonnes).

It also checks the turnover limit: ₹2 crore for 44AD and ₹50 lakh for 44ADA, raised to ₹3 crore and ₹75 lakh when cash receipts are no more than 5% of the total. Tax is then calculated under the new regime slabs (with the section 87A rebate up to ₹12 lakh of income) or the old regime, plus surcharge and 4% health and education cess. You can declare a higher actual profit if your real margin exceeds the presumptive rate.

Figures are for tax year 2026-27 (and FY 2025-26, whose slabs are the same). From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act; it keeps these schemes, but the calculator uses the familiar 44AD/44ADA/44AE names. It is meant for resident individuals below 60 (HUFs can use 44AD and 44AE but not 44ADA) filing ITR-4 (Sugam); capital gains at special rates and agricultural income are not included.

Presumptive income is a fixed share of receipts deemed to be profit, so no expense records are needed. Under 44AD it is 8% of turnover, reduced to 6% for amounts received by account-payee cheque, draft or electronic modes. Under 44ADA it is 50% of gross professional receipts. Under 44AE it is ₹7,500 per goods carriage for each month or part month owned, or ₹1,000 per tonne of gross vehicle weight per month for heavy goods vehicles above 12 tonnes. If actual profit is higher, the higher figure is taxed.

The limits are ₹2 crore (44AD) and ₹50 lakh (44ADA), rising to ₹3 crore and ₹75 lakh when cash receipts are 5% or less; 44AE allows at most 10 goods carriages. Tax then follows the slabs: new regime 0% to ₹4 lakh, then 5% to 30% in ₹4 lakh steps above ₹24 lakh, with a full rebate up to ₹12 lakh (and marginal relief just above it); old regime 0/5/20/30% with a ₹12,500 rebate up to ₹5 lakh. Surcharge (10%/15%/25%, plus 37% in the old regime) applies above ₹50 lakh with marginal relief, and 4% cess on top.