Enter your gross receipts and how much came in cash to see whether you can use presumptive taxation (section 44ADA, now section 58 of the Income-tax Act 2025), the income it counts and your tax for FY 2026-27 in the new and old regimes, with what to set aside each month.
How to use the 44ADA calculator
- Enter your gross receipts for the year and the part received in cash.
- Open the extra section for a higher actual profit, other income, your age and old-regime deductions.
- Read whether you qualify, the tax in each regime and how much to put aside each month.
Worked example
A freelance developer receives ₹40 lakh from clients, all by bank transfer. Half, ₹20 lakh, is taxed as income. In the new regime that's 5% of ₹4–8 lakh, 10% of ₹8–12 lakh, 15% of ₹12–16 lakh and 20% of ₹16–20 lakh: ₹2,00,000, plus 4% cess, ₹2,08,000, or 5.2% of the receipts. With ₹70 lakh of receipts and under 5% in cash, they still qualify (limit ₹75 lakh) and the tax on ₹35 lakh is ₹6,55,200.
The rules
- Income = 50% of gross receipts (or more, if you earned more)
- Limit ₹50 lakh; ₹75 lakh if cash receipts are 5% or less
- No other business expenses or depreciation claimed
- Advance tax in one instalment by 15 March
Sources: Income-tax Act 2025 section 58 (section 44ADA of the 1961 Act), Finance Act 2026 rates for tax year 2026-27. Everything runs in your browser.
Frequently asked questions
What is section 44ADA (section 58)?
A presumptive tax scheme for professionals: half of your gross receipts is treated as your income, whatever your real expenses, so you don't have to keep detailed accounts to work out profit. From tax year 2026-27 it's in section 58 of the Income-tax Act 2025, which replaced the 1961 Act; the rules carry over.
Who can use it?
Resident individuals and partnership firms (not LLPs) in specified professions: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, information technology, company secretaries and other notified professions. Many freelance developers, designers and consultants fall under these.
What is the receipts limit?
₹50 lakh of gross receipts a year, raised to ₹75 lakh if no more than 5% of your receipts came in cash. Cheques or drafts that aren't account payee count as cash.
How much tax will I pay?
Tax on half your receipts plus any other income, at the normal slab rates. With ₹20 lakh of receipts, ₹10 lakh is income, and in the new regime income up to ₹12 lakh pays no tax after the rebate. ₹40 lakh of receipts means ₹20 lakh of income and ₹2,08,000 of tax in the new regime, including 4% cess.
Can I show less than 50% as profit?
Only by keeping full books of account and having them audited, if your total income is above the basic exemption limit. You can always declare more than 50% if you earned more.
When do I pay the tax?
Under presumptive taxation you can pay all your advance tax in one instalment by 15 March of the financial year, instead of four instalments. Tax deducted by clients (TDS) counts towards it.
