What is Section 44ADA?

Section 44ADA allows eligible professionals to declare 50% of their gross receipts as taxable income (presumptive income), without maintaining detailed books of accounts. The remaining 50% is deemed as expenses.

Who is eligible for Section 44ADA?

Professionals listed under Section 44AA — including doctors, lawyers, engineers, architects, accountants, consultants, interior designers, and other notified professionals — whose gross receipts don't exceed the specified limit.

What is the gross receipts limit under 44ADA for FY 2025-26?

For FY 2025-26, the limit is ₹75 lakhs if 95% or more receipts are non-cash or digital. For FY 2024-25, the limit is ₹50 lakhs.

Can freelancers claim 80C deductions under Section 44ADA?

Under 44ADA, 50% of receipts is the deemed expense. However, under the old tax regime, Chapter VI-A deductions (80C, 80D, etc.) are still available to reduce your taxable income. These deductions are not available under the new tax regime.

Which is better for freelancers — old or new tax regime in FY 2025-26?

For FY 2025-26, the new regime is better for most freelancers as it offers a ₹60,000 rebate (effectively no tax up to ₹12L taxable income) and lower slab rates. Use this calculator to compare both regimes for your specific income.

Section 44ADAFY 2025-26 Updated

Freelancer Tax Calculator

Estimate your income tax under presumptive taxation (Sec. 44ADA). Compare old vs new regime instantly.

Upload AIS or TIS PDF

AI reads your business receipts and fills gross receipts automatically

Processed securely · Never stored · Drag & drop or click to browse

Don't have your AIS/TIS handy? No problem - just fill in the numbers manually below.

Where to get this: Log in at incometax.gov.in → Services → Annual Information Statement (AIS) → Proceed → pick the AIS or TIS tile for FY 2025–26 → Download (PDF). The PDF is password protected - the password is your PAN in lowercase + date of birth as DDMMYYYY (e.g. abcde1234f01011990).

Financial Year

Gross Receipts (Annual)

₹

₹1L₹12,00,000₹1 Cr

= Twelve Lakh Rupees

Presumptive income (50%)₹6,00,000

TDS Already Deducted (optional)

From your AIS/TIS or Form 26AS — tax your clients already deducted and deposited. Add it to see your refund or balance due.

₹

Other Income (Interest)

Savings and deposit interest are taxed at slab rates too - add them for an accurate total.

Savings Bank Interest