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Income Tax

Presumptive Tax Calculator

Estimate presumptive income for professionals and businesses under section 58 (old 44ADA and 44AD).

Tax year 2026-27

Your results will appear here

Enter your receipts to see the calculation.

Sources & calculation basis5
Section 58(2), Income-tax Act, 2025Parliament of India
Business: 6% of turnover received by specified banking or online mode and 8% of the rest, turnover up to two crore rupees (three crore where cash does not exceed 5%). Profession: 50% of gross receipts, up to fifty lakh rupees (seventy-five lakh where cash does not exceed 5%).

Old sections 44AD and 44ADA are now serial 1 and 3 of this table. The calculator applies these rates and limits using the cash receipts you enter.

View official source
Section 202(1), Income-tax Act, 2025Parliament of India
Upto ₹400000 - Nil ... Above ₹2400000 - 30%.

New regime slab rates applied to the presumptive income.

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Finance Act, 2026, First Schedule, Part III, Paragraph AParliament of India
Nil up to ₹ 250000; 5% to ₹ 500000; 20% to ₹ 1000000; 30% above.

Old regime slab rates, using the below-60 table.

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Section 156, Income-tax Act, 2025Parliament of India
100% of the income-tax payable or ₹ 60000, whichever is less, up to twelve lakh rupees.

Rebate and new regime marginal relief.

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Finance Act, 2026, section 3(4) and 3(5)Parliament of India
Surcharge from 10% above ₹ 5000000; Health and Education Cess at 4%.

Surcharge with marginal relief, then 4% cess.

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Assumptions & limitations

Calculations use section 58(2) of the Income-tax Act, 2025 for tax year 2026-27. Professionals qualify with gross receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less. Businesses qualify with turnover up to ₹2 crore, or ₹3 crore if cash receipts are 5% or less. Old regime tax uses the below-60 slabs. Consult a CA for your specific situation.

How presumptive income is worked out

Formula

Business: income = 6% × bank and online receipts + 8% × other receipts
Profession: income = 50% × gross receipts

Tax is then worked out on that income with the normal slabs, rebate, surcharge and 4% cess. The salary standard deduction does not apply to business or professional income.

You can declare a higher income if your actual profit is higher. The calculator shows the minimum presumptive income.

Turnover limits

Section 58(2) limits
SchemeLimitCash 5% or less
Business (old 44AD)₹2 crore₹3 crore
Profession (old 44ADA)₹50 lakh₹75 lakh

Cash share is cash receipts ÷ gross receipts. At exactly 5% the higher limit still applies. Above the limit, the presumptive scheme is not available.

Worked example

A business has turnover of ₹ 2,50,00,000, of which ₹ 10,00,000 came in cash. It uses the new regime and has no other income.

Worked example, business
ParticularsAmount
Turnover₹ 2,50,00,000
Cash receipts (4% of turnover)₹ 10,00,000
Limit, as cash is 5% or less₹ 3,00,00,000
8% of cash receipts₹ 80,000
6% of bank and online receipts (₹ 2,40,00,000)₹ 14,40,000
Presumptive income₹ 15,20,000
Tax on income, new regime₹ 1,08,000
Health & Education Cess (4%)₹ 4,320
Total tax₹ 1,12,320

With ₹ 15,00,000 of cash the share would be 6%, the limit would fall to ₹ 2,00,00,000, and this business could not use the scheme.

A professional with ₹ 40,00,000 of receipts, all through the bank, has presumptive income of ₹ 20,00,000. New regime tax is ₹ 2,00,000 plus ₹ 8,000 cess, a total of ₹ 2,08,000.

Edge cases

  • The 5% cash condition. The ₹3 crore and ₹75 lakh limits need cash receipts of 5% or less of the total. Cash of 5.01% brings the limit back to ₹2 crore or ₹50 lakh.
  • Cheques count as cash unless they are account payee cheques or drafts (section 58(9)).
  • Late bank receipts. The 6% rate needs payment by banking or online mode during the tax year or before the return due date. Later receipts are taxed at 8%.
  • Advance tax. Presumptive filers pay the whole advance tax by 15 March 2027, not in four instalments (section 408(2)).
  • Near ₹12 lakh. New regime income up to ₹12 lakh pays no tax. Just above it, marginal relief limits tax to the income above ₹12 lakh.

Assumptions

  • You are a resident, and the presumptive income is your only income.
  • Old regime tax uses the below-60 slabs. Deductions and TDS are not included.
  • Whether your profession is listed in section 62(4) is not checked.
  • Goods carriages (section 58(2) Table serial 2) are not supported.
  • The five-year lock-in in sections 58(7) and 58(8) is not checked.

Supported period

Tax year 2026-27, which runs from 1 April 2026 to 31 March 2027. Section 58(2) of the Income-tax Act, 2025 replaces sections 44AD and 44ADA of the 1961 Act, with the same rates and limits. The Finance Act, 2026 changed only section 58(11)(a)(i).

Earlier years fall under the 1961 Act and are not supported.

References

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