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Can a graphic designer use presumptive tax under section 58?

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Editorial team, serviceexportguide.com
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Short answer

Not automatically. The 50% scheme for professionals in section 58(2), Table row 3 of the Income-tax Act, 2025 (the old 44ADA) applies only to a "specified profession" in section 62(4), and graphic design is not named in that list.12 A designer whose work is not a specified profession may instead fall under row 1 (the old 44AD) for "any business", which deems 6% of digitally received turnover as profit, but whether design work is a business for this purpose is a judgement to settle with a chartered accountant.1

A freelance designer in Pune billing a US startup for brand identity work, or a UI designer on retainer with a London agency, often hears that "freelancers pay tax on 50%". That shortcut comes from the old section 44ADA. For income earned from 1 April 2026 (tax year 2026-27), the rule sits in section 58 of the Income-tax Act, 2025, and it is narrower than the shortcut suggests.1

Which professions can use the 50% scheme in row 3?

Row 3 of the Table in section 58(2) covers only a "specified profession as referred to in section 62(4)", carried on by a resident individual or a firm other than a limited liability partnership (LLP).1 Section 62(4) lists legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology and company secretary, plus any profession the Central Board of Direct Taxes (CBDT) notifies.2

Graphic design, illustration, branding and visual design are not on that list.2 Unless the work fits a listed head, such as a designer whose deliverable is really software (information technology) or interiors (interior decoration), row 3 does not apply.

What about row 1, the old 44AD?

Row 1 covers "any business" carried on by an "eligible assessee": a resident individual, Hindu undivided family or non-LLP firm that does not carry on a specified profession, does not earn commission or brokerage, and does not run an agency business.1 Deemed profit is 6% of turnover received through a specified banking or online mode, plus 8% of the rest, or actual profit if higher. The limit is ₹2 crore of turnover, or ₹3 crore if cash receipts are within 5%.1

Foreign client payments by bank transfer or platform payout are not cash, so a designer on row 1 would usually be in the 6% bracket.1 The open question is whether creative design is a "business" at all. The Act does not say, and a tax officer may take a different view from yours.

What should a designer do?

  1. Describe your deliverables honestly: logos and brand assets, product UI, front-end code, or interiors.
  2. Map them to section 62(4) using the specified professions guide.2
  3. If no listed profession fits, compare row 1 with declaring actual profit with books, as set out in 44AD vs 44ADA.1
  4. Remember the row 1 lock-in: departing from it within five tax years shuts the scheme for the next five.1

Confirm the classification with a chartered accountant (CA) before you file, because a different reading by the department changes the whole computation.

How did we verify this?

We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.

  1. [1]Income-tax Act, 2025, section 58 (Income Tax Department section page)
  2. [2]Income-tax Act, 2025, section 62 (Income Tax Department section page)

Frequently asked questions

Is UI/UX design a specified profession?+

UI/UX design is not named in section 62(4). Some UX work overlaps with information technology or technical consultancy, which are named, so the answer depends on what you actually deliver.2

Can a designer simply pick row 1 because 6% is lower than 50%?+

No. Row 1 is closed to anyone who carries on a specified profession, so you must first settle how your work is classified.1

What turnover limit applies under row 1?+

₹2 crore, or ₹3 crore where cash receipts are within 5% of turnover, for a resident individual, Hindu undivided family or non-LLP firm.1

Does row 1 have a lock-in?+

Yes. If you declare profit under row 1 and then depart from it in any of the next five tax years, section 58(7) bars the scheme for the following five tax years.1

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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