Presumptive Income under Section 44ADA
Declare 50% of your gross professional receipts as income under section 44ADA, instead of keeping books — for an eligible resident professional within the receipts limit.
Switch calculator — current: Presumptive income — 44ADA
Your details
If no (cash ≤ 5%), the limit rises to ₹75 lakh (AY 2024-25 onward).
Presumptive income is 50% of this.
Optional — a higher %, from 50 to 100.
Your answer
₹ —
Still needed: at least one line of gross receipts.
- The figure, and how it compares where there is a choice
- Every step of the working, line by line
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For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Presumptive income — 44ADA: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
Under section 44ADA an eligible resident professional can declare 50% of gross receipts as income, instead of keeping books.
Under section 44ADA an eligible resident professional can declare 50% of gross receipts as income, instead of keeping books. The scheme applies while gross receipts are within ₹50 lakh, raised to ₹75 lakh from AY 2024-25 when cash receipts are 5% of gross receipts or less. You may always declare a higher actual profit.
- Add up gross professional receipts for the year.
- Presumptive income = 50% of gross receipts (section 44ADA).
- You may declare a higher actual profit if your real profit is more.
- Eligibility: a resident professional (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and the like) with receipts up to ₹50 lakh, or ₹75 lakh when cash receipts are 5% or less (AY 2024-25 onward).
Worked example
Presumptive income under section 44ADA = ₹20,00,000.
A consultant has gross professional receipts of ₹40,00,000 for the year, all through the bank.
- Presumptive income = 50% × 40,00,000.
- Receipts are within the ₹50 lakh limit.
Presumptive income under section 44ADA = ₹20,00,000.
Frequently asked questions
How is presumptive income under 44ADA calculated?
It is 50% of gross professional receipts. You may declare a higher actual profit if you wish.
What is the limit for section 44ADA?
₹50 lakh of gross receipts, raised to ₹75 lakh from AY 2024-25 when cash receipts are 5% of gross receipts or less.
Who can use section 44ADA?
A resident individual or partnership firm (not an LLP) carrying on a notified profession — legal, medical, engineering, architecture, accountancy, technical consultancy or interior decoration — within the receipts limit.
How is 44ADA different from 44AD?
Section 44ADA is for professionals at 50% of receipts; section 44AD is for other small businesses at 8% (cash) or 6% (digital) of turnover.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.