Section 44ADA Tax Calculator

Doctors, lawyers, architects, engineers, accountants and similar professionals in India can choose a simple way of paying tax: instead of tracking every expense, they declare half of their receipts as profit and are taxed on that. Section 44ADA sets this up. The attraction is less paperwork; the catch is that the 50 percent is fixed, whatever your real costs. This page shows the tax under both regimes so you can judge.

The rules the page uses

The profit is 50 percent of the gross receipts you enter. The receipts limit is 75,00,000 if cash receipts are 5 percent or less of the total, and 50,00,000 otherwise. If you enter more than the limit, the page stops with a message instead of a figure. Other income such as interest or rent is added to the profit, and an age selector affects the old-regime slabs. The eligible professions are described by the law and the page does not check your profession.

How the tax is calculated

The page puts the profit and other income through the same engine as the Income Tax Calculator. It does not apply a standard deduction, because that is only for salary and pension income. For the old regime it subtracts the 80C and 80D amounts you enter. Then it shows taxable income, tax and cess under each regime, which regime is better, and the advance tax to pay by 15 March, equal to the lower of the two taxes.

A worked example

The default is a consultant with gross receipts of 30,00,000, of which 2 percent is cash. The limit is 75,00,000, and the presumptive profit is 15,00,000. In the new regime, taxable income is 15,00,000 and the tax is 1,09,200 including cess. In the old regime, after 1,50,000 of 80C and 25,000 of 80D, taxable income is 13,25,000 and the tax is 2,18,400. The new regime is better by 1,09,200, and the advance tax is 1,09,200. With receipts of 40,00,000 and 10 percent cash, the limit falls to 50,00,000, the profit is 20,00,000, and the tax is 2,08,000 in the new regime against 3,74,400 in the old.

Declaring less than 50 percent

If your real profit is lower than half of the receipts, you can declare it, but then you must keep books of account and may need an audit under section 44AB. Enter your actual expenses, and the page shows the profit you would report with books. That comparison helps when your costs, such as rent, staff and equipment, are above half of your receipts, in which case the presumptive scheme overstates your profit.

Edge cases

Gross receipts of zero or less are rejected. A cash share above 100 or below 0 is rejected. Other income is added before the slabs are applied, so interest on savings can push you into the next slab. The old-regime comparison includes only the 80C and 80D fields, so enter other deductions in the income tax page if they matter to you.

Limits

The page assumes you are an individual who is a resident of India and does not apply the extra rules for partnership firms. It does not check whether you can opt in or out in a given year, or the effect of opting out on later years, and it does not include the surcharge on very high incomes beyond what the tax engine does for the totals. Figures are for FY 2025-26. Talk to a chartered accountant before relying on the scheme.

Related tools

• 44AD Tax Calculator applies the equivalent shortcut to a small trading business.
• Advance Tax Calculator shows the single 15 March payment in a schedule.
• TDS Calculator shows the tax your clients deduct from your receipts.
• Invoice Generator creates the invoices whose total becomes your gross receipts.