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Section 44ADPresumptive income calculator — 44AD
Find the minimum profit to declare under the presumptive scheme for small businesses.
Presumptive income
Section 44AD — minimum profit
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Minimum profit–
Turnover–
How it works
- Declare at least 6% of receipts through bank or digital modes and 8% of cash receipts.
- Turnover limit: ₹2 crore, or ₹3 crore if cash receipts are within 5% of turnover.
- The same scheme continues under the Income-tax Act 2025.
- Declaring lower profit can make books and tax audit compulsory.
Common questions
What is the minimum profit under 44AD?
6% of receipts through bank or digital modes and 8% of cash receipts.
What is the turnover limit for 44AD?
₹2 crore, or ₹3 crore if cash receipts are within 5% of total turnover.
Can I show profit lower than 6% or 8%?
Yes, but then you may need to keep books of accounts and get a tax audit.
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