Tool

How much tax do you pay under the presumptive scheme for professionals?

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 30 October 2026
Reading time: 5 min read

Gross receipts this year (foreign currency)Average conversion rate (₹ per unit)

Cash receipts are 5% or less of the totalRaises the limit to ₹75,00,000Profit declared (% of receipts, minimum 50)

Gross receipts: ₹35,20,000
Presumptive income (50%): ₹17,60,000
Tax at slab rates: ₹1,52,000
Rebate: − ₹0
Health and education cess (4%): ₹6,080

Estimated tax for tax year 2026-27

₹1,58,080

4.5% of receipts

New tax regime, resident individual, no other income. Excludes surcharge (not reached at these income levels), interest and other income. Advance tax under the presumptive scheme is generally payable in one instalment by 15 March. An estimate, not tax advice.

Short answer

The presumptive scheme for professionals, old section 44ADA, is now section 58(2), Table row 3 of the Income-tax Act, 2025.¹ The calculator taxes 50% of gross receipts as income.¹ It applies new-regime slab rates and the section 156 rebate.³ It adds 4% Health and Education Cess.⁴ The result is your estimated tax for tax year 2026-27.⁵

What you enter	What the calculator shows	Rule used
Gross receipts for the year, in foreign currency with an average rate, or in rupees	Gross receipts in rupees, and a warning if they exceed the limit¹	Section 58(2), Table row 3: ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less¹
Profit declared, 50% or more of receipts	Presumptive income¹	Section 58(2), Table row 3¹
Nothing further	Tax at slab rates, rebate, cess and estimated total tax³⁴	Sections 156 and 202(1), and the Finance Act, 2026³⁴

Freelance professionals in India can pay tax on a fixed share of their receipts instead of working out actual profit. The Presumptive Tax Calculator estimates that tax for tax year 2026-27 (1 April 2026 to 31 March 2027) under the new regime.¹⁵

What does the Presumptive Tax Calculator calculate?

The Presumptive Tax Calculator calculates estimated income tax for tax year 2026-27 for a professional using the presumptive scheme, from gross receipts in foreign currency or rupees.¹⁵ Under that scheme you declare 50% of gross receipts, or more if your actual profit is higher, as income instead of claiming actual expenses.¹

You enter	The calculator shows
Gross receipts, in foreign currency with an average rate, or in rupees	Gross receipts in rupees
Whether cash receipts are 5% or less of the total¹	The receipts limit that applies, and a warning if you exceed it
Profit declared, 50% or more	Presumptive income
Nothing further	Tax at slab rates, rebate, cess, estimated total tax and tax as a share of receipts

The calculator opens with sample figures, which you replace with your own.

How does the Presumptive Tax Calculator work out the tax?

The Presumptive Tax Calculator checks the receipts limit, takes 50% or your higher percentage as income, applies new-regime slab rates, applies the rebate and adds cess.¹³⁴

Check the limit. Gross receipts must be within ₹50 lakh, or ₹75 lakh if cash receipts are no more than 5% of the total. Cheques and drafts that are not account payee count as cash.¹
Work out presumptive income. 50% of gross receipts, or the higher percentage you enter.¹
Apply new-regime slab rates (section 202(1)): nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above.³
Apply the rebate (section 156): tax is nil if income does not exceed ₹12 lakh (rebate up to ₹60,000), with marginal relief just above that level.³
Add 4% Health and Education Cess.⁴

For example, say a software developer has gross receipts of ₹30,00,000. Presumptive income is ₹15,00,000. Tax at slab rates is ₹1,05,000: ₹20,000 on ₹4 lakh to ₹8 lakh, ₹40,000 on ₹8 lakh to ₹12 lakh and ₹45,000 on the last ₹3 lakh.³ No rebate applies above ₹12 lakh, and cess of ₹4,200 brings the total to ₹1,09,200, about 3.6% of receipts.³⁴

How do you use the Presumptive Tax Calculator?

You use the Presumptive Tax Calculator by entering your receipts for the year and two settings.

Choose "Foreign currency" or "Rupees", depending on how you track your receipts.
Enter your total receipts for the year and, for foreign currency, an average conversion rate.
Tick the cash box if cash receipts are 5% or less of the total, and raise the profit percentage only if your actual profit is higher.¹
Read the presumptive income, tax at slab rates, rebate, cess and estimated total tax.

The result updates as you type.

What does a Presumptive Tax Calculator result mean?

A Presumptive Tax Calculator result is an estimate of your income tax for tax year 2026-27 if the presumptive scheme applies and you have no other income.¹³

Nil tax: presumptive income of ₹12 lakh or less, so the section 156 rebate covers the tax.³
Marginal relief: just above ₹12 lakh, tax is limited to the income above ₹12 lakh. For example, receipts of ₹25,00,000 give income of ₹12,50,000 and slab tax of ₹67,500, which marginal relief cuts to ₹50,000, or ₹52,000 with cess.³⁴
Over the limit warning: receipts above ₹50 lakh, or ₹75 lakh with the cash box ticked, mean the scheme is not available, and the figures are for illustration only.¹
Advance tax: under section 408(2), the whole advance tax is due in one instalment by 15 March 2027 if the liability after TDS is ₹10,000 or more.³

Read presumptive taxation for freelancers before relying on the estimate.

What does the Presumptive Tax Calculator assume, and what does it not cover?

The Presumptive Tax Calculator assumes a resident individual under the new tax regime, with no other income and no foreign tax credit.¹⁴

Rates used: new-regime slab rates under section 202(1), the section 156 rebate with marginal relief, and the average conversion rate you enter.³
Taxes included: income tax and 4% Health and Education Cess; no surcharge, which starts above ₹50 lakh of total income. At 50% of the ₹75 lakh limit, presumptive income is at most ₹37.5 lakh, but a much higher declared percentage could cross ₹50 lakh.¹⁴
Not covered: interest, other income, foreign tax credit and whether your work is a specified profession. Software and IT work is listed, while design, writing, marketing and video work need a closer look.²

Confirm your position with a chartered accountant before filing.

What do people get wrong when calculating presumptive tax for professionals?

The most common mistakes when calculating presumptive tax for professionals are assuming any freelancer qualifies and assuming no books are needed.¹²

Every freelancer assumed eligible: the scheme is for a profession listed in section 62(4), so check that your work is listed.²
Books assumed unnecessary: section 62(1)(a) of the Income-tax Act, 2025 requires a person carrying on a specified profession to keep books, with no stated exception for presumptive filers.²
Cash limit misread: the ₹75 lakh limit applies only if cash receipts are no more than 5% of the total, and cheques that are not account payee count as cash.¹
Declaring less than 50%: if your total income exceeds the basic exemption limit, section 58(3) then requires books and a tax audit under section 63.¹³
Standard deduction claimed: the standard deduction applies to salary income only.

Checking these points before choosing the scheme avoids most corrections.

Which rules should you know about presumptive tax for professionals?

The rules to know about presumptive tax for professionals are sections 58, 62, 156, 202 and 408 of the Income-tax Act, 2025 and the cess under the Finance Act, 2026.¹²³⁴

Rule	What it says	Best for
Section 58(2), Table row 3	50% deemed profit, receipts up to ₹50 lakh or ₹75 lakh¹	Professionals choosing the scheme
Section 58(3)	Books and tax audit if you declare less than 50% above the exemption limit¹³	Professionals with low actual profit
Section 62(1)(a) and 62(4)	Books for specified professions, and the list of professions²	Checking eligibility and record-keeping
Section 156	Rebate up to ₹60,000 for income up to ₹12 lakh³	Professionals with income near ₹12 lakh
Section 202(1)	New-regime slab rates³	Every individual taxpayer under the new regime
Section 408(2)	Advance tax in one instalment by 15 March³	Professionals planning cash flow
Finance Act, 2026, section 3	Health and Education Cess at 4%⁴	Every taxpayer

The Income-tax Act, 2025 came into force on 1 April 2026.⁵

How did we verify this?

We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.

Frequently asked questions

Is section 44ADA still valid for freelancers?+

For income earned up to 31 March 2026, yes. From 1 April 2026, which is tax year 2026-27, the same scheme sits in section 58(2), Table row 3 of the Income-tax Act, 2025, with the same 50% deemed profit and the same receipts limits.¹⁵

Who can use the presumptive scheme for professionals?+

A resident individual or a resident firm other than an LLP, carrying on a profession listed in section 62(4), with receipts within the limit.¹² The listed professions include legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, information technology and company secretary work.

Why does the Presumptive Tax Calculator apply no standard deduction?+

The standard deduction applies to salary income only, and income from a profession is not salary. The Presumptive Tax Calculator therefore applies the 50% deemed profit and the slab rates directly to your professional receipts.¹³ If you also have salary income, use a full tax calculation instead, because the calculator assumes no other income.

When does a professional using section 58(2) pay advance tax?+

Under section 408(2), a professional declaring income under section 58(2), Table row 3 pays the whole advance tax in one instalment by 15 March, which is 15 March 2027 for tax year 2026-27, if the liability after TDS is ₹10,000 or more.³ The calculator's total is a starting point for that payment.

Does a professional using the presumptive scheme need books or a tax audit?+

Section 62(1)(a) requires a person carrying on a specified profession to keep books, with no stated exception for those declaring 50%, so confirm with a chartered accountant.² If you declare less than 50% and your income exceeds the basic exemption limit, section 58(3) requires books and a tax audit.¹³

Can the Presumptive Tax Calculator work from US dollar receipts?+

Yes. Choose Foreign currency, enter your total receipts for the year and an average conversion rate in rupees per unit, and the calculator converts them to rupees before applying the 50% deemed profit.¹ Use the rates on your FIRAs or bank statements to set a realistic average rate for the year.

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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