Presumptive Tax Calculator (44AD)

Work out section 44AD presumptive income from eligible digital and other receipts. Enter your own values below to see minimum presumptive business income and check the method behind it.

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Your result and breakdown will appear here.

How this calculator works

Minimum presumptive income = qualifying digital receipts × 6% + other eligible receipts × 8%.

Before you use the result

  • Check section 44AD eligibility, receipt timing, turnover limits and excluded businesses separately. You may declare higher profit.

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What is Presumptive Tax Calculator (44AD)?

Presumptive Tax Calculator (44AD) helps you work out section 44AD presumptive income from eligible digital and other receipts.

The main result is minimum presumptive business income, with a breakdown of 6% component and 8% component. The formula, example and assumptions below explain how to interpret it.

How to use Presumptive Tax Calculator (44AD)

Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.

  1. Gather eligible receipts qualifying for 6% rate (₹) and other eligible receipts at 8% (₹). Use values from the same situation or reporting period.
  2. Replace the example eligible receipts qualifying for 6% rate with your own value, then complete the other fields. Check the displayed units.
  3. Select Calculate and read minimum presumptive business income with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
  • Enter eligible receipts qualifying for 6% rate in ₹, at least 0. Decimals are accepted.
  • Enter other eligible receipts at 8% in ₹, at least 0. Decimals are accepted.

Presumptive Tax Calculator (44AD): a worked example

With the inputs below, the result is ₹1,30,000 (minimum presumptive business income). Follow the example, then replace these illustrative values with your own.

Example inputs and output
Input or outputExample value
Eligible receipts qualifying for 6% rate (₹)₹15,00,000
Other eligible receipts at 8% (₹)₹5,00,000
Minimum presumptive business income₹1,30,000
6% component₹90,000
8% component₹40,000

Understanding the Presumptive Tax (44AD) result

Read minimum presumptive business income alongside 6% component and 8% component. These describe different parts of the same calculation.

Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.

  • Example 6% component: ₹90,000
  • Example 8% component: ₹40,000

Presumptive Tax Calculator (44AD): assumptions and common mistakes

A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.

  • Check section 44AD eligibility, receipt timing, turnover limits and excluded businesses separately. You may declare higher profit.
  • Use the rate and eligibility rules that apply to your transaction. An example rate does not establish a tax liability or entitlement.

For wider guidance, visit Income Tax Department. The formula and scope of this specific tool are stated on this page.

Presumptive Tax Calculator (44AD) FAQs

What does Presumptive Tax Calculator (44AD) calculate?

Presumptive Tax Calculator (44AD) helps you work out section 44AD presumptive income from eligible digital and other receipts. Its main output is minimum presumptive business income in ₹.

What inputs do I need for Presumptive Tax Calculator (44AD)?

You need eligible receipts qualifying for 6% rate (₹) and other eligible receipts at 8% (₹). Use the field labels and units to match your figures to the formula.

Which formula does Presumptive Tax Calculator (44AD) use?

Minimum presumptive income = qualifying digital receipts × 6% + other eligible receipts × 8%.

What is a worked example for Presumptive Tax Calculator (44AD)?

Example inputs: Eligible receipts qualifying for 6% rate: ₹15,00,000; Other eligible receipts at 8%: ₹5,00,000. The result is ₹1,30,000 (minimum presumptive business income).

How should I enter eligible receipts qualifying for 6% rate?

Enter eligible receipts qualifying for 6% rate in ₹, at least 0. Decimals are accepted.

How do I choose other eligible receipts at 8%?

Enter other eligible receipts at 8% in ₹, at least 0. Decimals are accepted. The example uses ₹5,00,000; replace it if your circumstances differ.

How should I read minimum presumptive business income?

Read minimum presumptive business income alongside 6% component and 8% component. These describe different parts of the same calculation.

Why might my Presumptive Tax Calculator (44AD) result differ from my records?

Check section 44AD eligibility, receipt timing, turnover limits and excluded businesses separately. You may declare higher profit. Differences in entered values, units or rounding can also change the comparison.

Can I compare two scenarios in Presumptive Tax Calculator (44AD)?

Yes. Note your first minimum presumptive business income, change eligible receipts qualifying for 6% rate or another input, and select Calculate again. Editing a field clears the old result so it is not mistaken for a new calculation.

Is Presumptive Tax Calculator (44AD) free, and where are my inputs calculated?

This calculator is free to use without signing in. Its formula runs in your browser; calculator inputs are not sent to a calculation API. The inputs reset to the example values when you reset the form or start a fresh page.