Income TaxFY 2026-27 (AY 2027-28)
Section 44AD Presumptive Tax Calculator
Compute presumptive business income — 8% on cash, 6% on digital receipts. Turnover limit of ₹3 Cr (FY 2024-25 onwards) for digital-heavy businesses.
Business details
Profit for tax
₹15.20 L
6.1% of turnover
✓ Eligible: Turnover ₹2.50 Cr is within limit of ₹3 Cr (cash receipts 4.0% of total)
6% on digital
₹14.40 L
₹2.40 Cr
8% on cash
₹80.0 K
₹10.00 L
Total presumptive
₹15.20 L
Final for tax
₹15.20 L
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Sec 44AD: eligible business with turnover up to ₹3 Cr (if cash receipts ≤ 5% of total) or ₹2 Cr otherwise. Profit deemed at 8% (cash) / 6% (digital). No books / audit required if income is at or above presumptive limit. Higher actual profit must be declared.
FAQs
Frequently asked questions
Who is eligible for 44AD?+
Resident individuals, HUFs and partnership firms (not LLPs) carrying on any business EXCEPT: profession u/s 44AA(1), commission/brokerage business, agency business, and businesses already covered u/s 44AE / 44BB / 44BBB.
Can I declare lower than 8% / 6% profit?+
Yes, but then you must (a) maintain books u/s 44AA and (b) get them audited u/s 44AB if total income exceeds the basic exemption limit. Sec 44AD(4) also bars you from claiming presumptive for 5 subsequent years.
What about professionals?+
Professionals (doctors, CAs, architects, etc. covered u/s 44AA(1)) use Sec 44ADA — 50% of gross receipts deemed as profit, with turnover limit of ₹75 lakh (₹50L if cash > 5%).
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