Enter your income and expenses below. We'll automatically compare Section 44ADA against the Normal method to tell you which saves you more tax. Section 44ADA allows eligible professionals to declare 50% of gross professional receipts as presumptive income. The remaining 50% is treated as deemed business expenses. Final tax depends on tax regime, rebates, other income, deductions, and eligibility.
Optional. Used to compare if Normal Tax is better than 44ADA.
Note: Section 44ADA applies only to specified professionals. If you are unsure whether your profession qualifies, verify with a CA before filing.
Section 44ADA is a presumptive taxation scheme for specified professionals in India. Section 44ADA allows eligible professionals to declare 50% of gross professional receipts as presumptive income. The remaining 50% is treated as deemed business expenses. Final tax depends on tax regime, rebates, other income, deductions, and eligibility.
If your actual business expenses (software, internet, travel, freelancer payouts) are significantly MORE than 50% of your revenue, the actual expenses method will save you more tax. However, you must maintain proper books of accounts and invoices.
Section 44ADA applies only to specified resident professionals. Some IT/software, consulting, legal, medical, engineering, accounting, architecture and interior decoration professionals may qualify depending on the exact nature of services. The normal limit is ₹50 lakh, with a possible ₹75 lakh limit when cash/non-specified receipts do not exceed 5%. Verify with a CA if unsure.
No. The standard deduction of ₹75,000 (New Regime) applies only to salaried employees and pensioners. Freelancers using 44ADA cannot claim this deduction.
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Read our complete guide comparing normal taxation with presumptive taxation.
Read the Guide →Use our advanced tax calculator to compare regimes and check advance tax.
Open Tax Calculator →Compute tax under Section 44ADA for FY 2026-27. It assumes 50% profit, applies the latest slabs, and factors Section 87A. Read our 44ADA Guide.
Taxable Income = Gross Receipts × 50%
Final Tax = Tax on Slabs + 4% Health & Education Cess
Section 44ADA lets eligible professionals estimate taxable income using presumptive taxation, usually by treating 50% of gross receipts as income where conditions apply.
A freelancer in India should file ITR-4 (Sugam) if they are opting for the presumptive taxation scheme under Section 44ADA, which allows them to declare 50% of income as profit. If a freelancer chooses to declare their actual profits (which may be lower than 50%) and maintain detailed books of accounts, they must file ITR-3.