Presumptive Taxation Calculator: 44AD and 44ADA
Find your deemed profit and tax liability under the presumptive schemes for AY 2026-27. The calculator checks the 5% cash receipt test that enables access to the higher Rs 3 crore and Rs 75 lakh ceilings, and flags when declaring a lower profit would force a tax audit.
Receipts and profile
Resident individuals, HUFs and partnership firms running an eligible business. Commission agents, brokers, agencies and professionals covered by 44ADA are excluded.
Eligibility and tax
Eligible under Section 44AD
Turnover ₹41,00,000 against a ceiling of ₹3,00,00,000. Cash is 2.4% of receipts, so the higher limit applies.
Advance tax under the presumptive schemes is due in a single instalment: 100% by 15 March. There are no June, September or December instalments.
Estimates only. Partnership firms are taxed at a flat 30% and are not modelled here.
How to use the presumptive tax calculator
Choose your scheme
Section 44AD covers eligible businesses, Section 44ADA covers notified professions. The turnover ceiling and the deemed profit rate differ between them.
Split digital and cash receipts
Digital receipts attract the lower 6% rate under 44AD and enable access to the higher turnover ceiling. Keeping cash within 5% of turnover is what matters.
Review eligibility and tax
See whether you stay inside the limit, the deemed profit, the tax under both regimes, and whether a tax audit is triggered.
Presumptive scheme limits for AY 2026-27
| Test | Section 44AD | Section 44ADA |
|---|---|---|
| Who can opt in | Eligible business | Notified professions |
| Standard ceiling | Rs 2 crore | Rs 50 lakh |
| Ceiling if cash is within 5% | Rs 3 crore | Rs 75 lakh |
| Deemed profit on digital receipts | 6% | 50% |
| Deemed profit on cash receipts | 8% | 50% |
| Lock-in on opting out | 5 assessment years | None |
| Advance tax | 100% by 15 March | 100% by 15 March |
Read the detailed walk-throughs for Section 44AD and Section 44ADA.
Presumptive taxation FAQs
What is the turnover limit for Section 44AD in AY 2026-27?+
The base limit is Rs 2 crore. It rises to Rs 3 crore where cash receipts do not exceed 5% of total turnover. Cheque or draft payments that are not account-payee count as cash for this test.
What is the limit for Section 44ADA for professionals?+
Gross receipts up to Rs 50 lakh, rising to Rs 75 lakh where cash receipts stay within 5% of total receipts. The deemed profit is 50% of gross receipts in both cases.
Can I declare a profit lower than the presumptive rate?+
Yes. Under Section 44ADA, declaring less than 50% while your income exceeds the basic exemption limit means books under Section 44AA and an audit under Section 44AB(d). Under Section 44AD, the books-and-audit consequence applies only if you used 44AD in any of the previous five years (Section 44AD(4) and 44AB(e)). If you never used it, you can declare actual profit under normal provisions, with an audit only if turnover crosses the Section 44AB(a) limit.
What is the five-year lock-in under Section 44AD?+
If you declare profit under 44AD and then, within the next five years, declare less than the presumptive rate, you are barred from 44AD for the following five assessment years. During that period you need books and a tax audit in any year your income exceeds the basic exemption limit. Section 44ADA has no such lock-in.
Do I still pay advance tax under the presumptive scheme?+
Yes, but in a single instalment. Taxpayers under 44AD or 44ADA pay 100% of their advance tax by 15 March instead of the usual four instalments. Missing it attracts interest under Section 234C.
Which ITR form applies to presumptive income?+
ITR-4 (Sugam) for resident individuals, HUFs and firms other than LLPs with presumptive income, provided total income is within Rs 50 lakh. ITR-4 also allows long-term equity gains under Section 112A up to Rs 1.25 lakh. Beyond that, with other capital gains, or with foreign assets, ITR-3 applies.
Zero Bookkeeping, Filed by a CA
Presumptive filing looks simple until an eligibility test or an advance tax instalment is missed. Tax Garden checks your scheme, files ITR-4, and keeps the 5% cash test documented.