Tax for small businesses & freelancers. The Presumptive Tax Calculator (44AD/44ADA) takes annual turnover or receipts, scheme, tax regime, deductions (old regime only) and returns income tax for the year plus presumptive income, tax as a share of turnover. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Indian tax rules change with each Finance Act and GST Council meeting. The rates here follow the current published rules, but confirm the figures on the official portals or with a chartered accountant before filing or invoicing. Use the worked example below to check the maths against your own figures.
How the Presumptive Tax Calculator (44AD/44ADA) works
Small businesses (turnover up to ₹2 crore, or ₹3 crore with 95% digital receipts) can declare 8% of turnover as profit (6% for digital receipts) under section 44AD, and professionals 50% of receipts under 44ADA, without maintaining books or getting audited.
Worked example
With the example values (annual turnover or receipts of ₹4,000,000, scheme "44AD business: 8% of turnover", tax regime "New regime", deductions (old regime only) of ₹0), the income tax for the year is ₹0.00; presumptive income ₹320,000.00, tax as a share of turnover 0%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Rebate under 87A and cess included; the standard deduction does not apply to business income.
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Frequently Asked Questions
How is income tax for the year calculated?
presumptive income = turnover × scheme rate; tax = slab tax on that income + 4% cess.
Which figures do I need?
Annual turnover or receipts, scheme, tax regime, deductions (old regime only). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Are the rates current?
The calculator uses the rates and rules published for the current financial year and shows them under the result. Rates change with each Budget and GST Council decision, so verify on the official portal before filing.
What assumptions does this calculator make?
Rebate under 87A and cess included; the standard deduction does not apply to business income.
