Key Benefits Analysis
Better option: 44ADA Presumptive
On these numbers, 44ADA Presumptive leaves you about ₹9,44,740 more per year than Normal Business, with an effective tax rate of 7.3%.
Scenario Comparison
44ADA Presumptive
50% of gross receipts taxed as profit
Net Retained (per year)
₹48,93,120
Normal Business
Actual receipts minus actual expenses
Books of account and a tax audit (Sec 44AB) are likely required. Add audit fees under Advanced.
Net Retained (per year)
₹39,48,380
Detailed Breakdown
| Metric (annual) | 44ADA Presumptive | Normal Business |
|---|---|---|
| Gross receipts | ₹52,80,000 | ₹52,80,000 |
| Business expenses | ₹0 | ₹0 |
| Taxable income | ₹26,40,000 | ₹52,80,000 |
| Income tax + surcharge | ₹3,72,000 | ₹12,80,400 |
| Health & education cess (4%) | ₹14,880 | ₹51,216 |
| Total tax | ₹3,86,880 | ₹13,31,620 |
| Compliance costs | ₹0 | ₹0 |
| Net retained | ₹48,93,120 | ₹39,48,380 |
Not sure which route fits you?
A ReviseTax CA can check your profession's 44ADA eligibility, your expenses and your regime choice before you file.
Book a free 15-min call with a CADisclaimer — estimates only, not tax advice
Figures are estimates for resident individuals using the slab rates for FY 2025-26 (AY 2026-27) and FY 2026-27, including the Sec 87A rebate (with marginal relief), surcharge (with marginal relief), 4% health & education cess and rounding to the nearest ₹10. The Income-tax Act, 2025 replaces the Income Tax Act, 1961 from 1 April 2026 (FY 2026-27 onwards); the presumptive scheme for professionals continues under the new Act.
44ADA is available only for specified professions (e.g. legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and notified professions). The ₹75L limit applies only when cash receipts are no more than 5% of gross receipts; otherwise the limit is ₹50L. Under normal business taxation, books of account and a tax audit may be required.
Other income, deductions, advance-tax interest and GST are not considered. Please consult a Chartered Accountant before filing.