Section 44ADA Tax Calculator — Presumptive Tax for Indian Freelancers
Calculate your income tax and advance tax obligations under Section 44ADA presumptive taxation. For professionals with gross receipts under ₹75 lakh.
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📌 Under 44ADA: If your gross professional receipts are ≤ ₹75L, you can declare 50% as profit without maintaining books of accounts. Tax is calculated on that 50%. If your actual profit margin is above 50%, this is very beneficial.
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Must be ≤ ₹75,00,000 for 44ADA eligibility
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Frequently Asked Questions
44ADA is available to professionals engaged in specified professions: IT/software development, legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, and film production. It is NOT available for traders or businesses under normal business categories (they use 44AD instead).
Gross professional receipts must not exceed ₹75 lakh in a financial year. If you exceed this limit, you must maintain books of accounts and get them audited under Section 44AB.
No. Under 44ADA, you declare 50% of gross receipts as profit — this 50% covers ALL your expenses. You cannot additionally claim rent, internet, equipment, or any other business expenses. The 50% flat deduction is meant to cover all such costs.
Generally yes, if your actual profit margin is above 50%. For example, if your receipts are ₹20L and your actual expenses are ₹2L (profit = ₹18L = 90% margin), under 44ADA you only declare ₹10L as profit, saving tax on ₹8L. But if your actual margin is below 50%, 44ADA may mean paying more tax.
If gross receipts exceed ₹75L, 44ADA is not available. You must maintain proper books of accounts, get a tax audit done under Section 44AB, and file ITR-3 with full accounts. Consider consulting a CA in this situation.