Section 44ADA Presumptive Tax Calculator
Calculate your tax liability under Section 44ADA presumptive taxation. See how much you save by declaring 50% profit without needing a formal tax audit or balance sheet, and compare New vs Old Tax Regime.
1. Enter Your Financial Details
Even if your actual expenses are only 10% or 15%, Section 44ADA allows you to legally presume expenses at a full 50% without submitting purchase bills to an auditor!
2. Tax Liability & Regime Comparison
Advance Tax Schedule
44ADA Special Rule⚡ Huge Relief: Freelancers filing under Section 44ADA do not need to pay quarterly installments. You can pay 100% of advance tax in a single payment by March 15th!
How Does Section 44ADA Work for Indian Freelancers?
Section 44ADA of the Income Tax Act, 1961 is a special presumptive taxation scheme specifically enacted for specified professionals. If you are an eligible professional whose annual gross receipts do not exceed ₹75 Lakhs (provided that digital receipts account for at least 95% of gross turnover), you can take advantage of the following benefits:
- Pay Tax on Half: You are deemed to have earned a taxable profit of only 50% of your gross receipts. You do not need to show proof of expenses for the remaining 50%.
- No Books of Accounts (Section 44AA): You are not required to maintain formal ledgers, daybooks, profit and loss statements, or balance sheets.
- No Mandatory Tax Audit (Section 44AB): You are exempt from hiring a CA for a compulsory business tax audit as long as you declare 50% or more profit.
- Simple ITR Form: You can file ITR-4 (SUGAM), which is drastically simpler than the 30-page ITR-3 form.
Who is Eligible for Section 44ADA?
Eligible professions specified under Section 44AA(1) and related CBDT notifications include:
- Technical Consultancy & Software: Web developers, software engineers, DevOps contractors, QA engineers, SaaS builders.
- Film Artists, Video & Creative Professionals: Video editors, animators, colorists, directors, cameramen, voiceover artists.
- Design & Interior Decoration: UI/UX designers, brand designers, CAD specialists, interior designers.
- Legal, Medical & Accountancy: Lawyers, physicians, accountants, architects.