Calculate exact tax liability for professionals under Section 44ADA presumptive taxation.
Under Sec 44ADA, limit is ₹75 Lakhs for digital transactions.
By using Section 44ADA, you are saving ₹4,68,000 in taxes compared to declaring your full gross receipts as profit under the normal slab.
Section 44ADA is a presumptive taxation scheme for professionals and freelancers. It allows you to declare 50% of your gross receipts as your total profit, meaning you only pay tax on half your income.
Professionals like software developers, consultants, doctors, lawyers, architects, and engineers whose gross receipts do not exceed ₹75 Lakhs (if 95% of receipts are digital/bank transfers) or ₹50 Lakhs (otherwise).
No! The biggest advantage of Section 44ADA is that you are exempt from maintaining detailed books of accounts and tracking every single business expense.
This calculator uses the New Tax Regime (FY 2024-25) on your 50% presumptive income, as the new regime is the default and generally more beneficial for most professionals under 44ADA.