Presumptive Business Calculator

Presumptive taxation simplifies tax filing for small businesses and professionals. Under Sections 44AD, 44ADA, and 44AE, taxpayers can declare income at a fixed percentage without maintaining detailed records.

Presumptive Business Income

44AD

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44ADA

₹0

44AE

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*Applicable surcharge and 4% cess payable on the amount of tax.

Total Presumptive Business Income

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*Applicable surcharge and 4% cess payable on the amount of tax.

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Presumptive Business Calculator

Gross Receipts/Sale from Bank/payee chq /electronic mode

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Income U/s 44AD@6%

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Gross Receipts/Sale from any other mode

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Income U/s 44AD@8%

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Presumptive taxation simplifies tax filing for small businesses and professionals. Under Sections 44AD, 44ADA, and 44AE, taxpayers can declare income at a fixed percentage without maintaining detailed records.

Presumptive Taxation Calculator: Simplify Your Tax Calculation

Who can make use of the Presumptive Calculator?

Small Business Owners_ Section 44AD

Specified professionals _ Section 44ADA

Transporters Section 44AE

Who Can Use Presumptive Taxation?

• Section 44AD: Small businesses with a turnover up to Rs. 2 crore (if cash receipts are more than 5% of total receipts) or Rs. 3 crore (if cash receipts are up to 5% of total receipts) can declare 8% of turnover (6% for digital receipts) as income. • Section 44ADA: Specified professionals such as lawyers, doctors, engineers, accountants, architects, interior designers, and technical consultants with gross receipts up to Rs. 50 lakh (if cash receipts are more than 5% of total receipts) or Rs. 75 lakh (if cash receipts are up to 5% of total receipts) can declare 50% of receipts as income. • Section 44AE: Transporters owning up to 10 vehicles can declare fixed income per vehicle per month.

Why Use a Presumptive Taxation Calculator?

Calculating taxable income manually can be tricky. Our Presumptive Taxation Calculator helps you: • Save time by automating calculations. • Avoid errors in tax computation. • Plan taxes better by estimating liabilities instantly.

How to Use the Calculator?

• Enter total turnover or receipts. • Select the applicable Section (44AD, 44ADA, or 44AE). • Provide details like digital and cash receipts or number of vehicles. • Get instant results showing taxable income and estimated tax liability.

Illustration

Example 1 (44AD): A trader with a turnover of Rs. 50 lakh opts for presumptive taxation. His taxable income: • Digital receipts: Rs. 30 lakh → 6% = Rs. 1.8 lakh. • Cash receipts: Rs. 20 lakh → 8% = Rs. 1.6 lakh. • Total taxable income: Rs. 3.4 lakh. • Example 2 (44ADA): A freelance consultant earns Rs. 40 lakh. Under 44ADA, taxable income = 50% of Rs. 40 lakh = Rs. 20 lakh.

Conclusion

Presumptive taxation reduces compliance burdens. Use our Presumptive Taxation Calculator to simplify your tax calculations and plan better!

It allows small businesses and professionals to declare income at a fixed percentage, avoiding the need for detailed bookkeeping.

Small businesses with a turnover up to Rs. 2 crore (if cash receipts exceed 5%) or Rs. 3 crore (if cash receipts are within 5%).

Lawyers, doctors, engineers, accountants, architects, interior designers, and technical consultants.

Professionals must declare 50% of their gross receipts as taxable income.

Yes, under Section 44AE, owners of up to 10 vehicles can declare fixed income per vehicle per month.

No, taxpayers opting for presumptive taxation are exempt from maintaining detailed books of accounts.

No, turnover excludes GST collected from customers.

Yes, individuals can still claim deductions under Section 80C and other applicable sections.

Frequent switching is discouraged. If you opt out of presumptive taxation, you must maintain books for five consecutive years.

It provides an instant estimate of taxable income and tax liability, helping in better financial planning.