Presumptive Taxation Eligibility Checker
Find out live whether you qualify to declare income on a presumptive basis — the scheme, the presumptive rate and the turnover cap that applies to you.
Applicable for FY 2026-27 (AY 2027-28) and FY 2027-28.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Fill in the details — the answer on the right updates as you go.
Eligibility detail
Get your presumptive ITR filed by a CA
We confirm your scheme, compute presumptive income and file ITR-4 accurately.
Disclaimer: Indicative eligibility check per Sections 44AD, 44ADA and 44AE as amended by the Finance Act 2025. Commission/agency and plying-hiring businesses are excluded from 44AD. Confirm your specific facts with a CA before filing.
Presumptive taxation at a glance
Presumptive taxation lets eligible small taxpayers declare income at a fixed percentage of turnover or receipts — no books of account, no tax audit, and tax paid in a single advance-tax instalment by 15 March. Three sections cover it, each with its own eligibility test and turnover cap.
The three schemes compared
Pick the row that matches your work. Each scheme has a different eligible assessee, turnover cap and presumptive rate.
| Section | Who | Cap | Presumptive income |
|---|---|---|---|
| 44AD | Resident Individual, HUF or Partnership firm (not LLP/Company) running an eligible business — excludes commission/agency, plying-hiring and profession | ₹3 Cr if cash receipts ≤ 5% of turnover, otherwise ₹2 Cr | 6% of digital / banking turnover and 8% of cash turnover |
| 44ADA | Resident individual or partnership in a specified profession — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and notified others | ₹75 L if cash receipts ≤ 5% of receipts, otherwise ₹50 L | 50% of gross professional receipts |
| 44AE | Any person owning not more than 10 goods carriages at any time during the year and engaged in plying / hiring / leasing them | 10 goods vehicles maximum (no turnover cap) | ₹1,000/tonne/month for heavy vehicles (>12T); ₹7,500/vehicle/month for others |
How the scheme works
Presumptive taxation collapses the usual profit-and-loss workflow into four simple steps.
Check eligibility
Confirm your activity, entity type and that turnover / receipts are within the cap for your section.
Apply the rate
Multiply turnover by the presumptive rate (6%/8%, 50%, or the per-vehicle figure) to get deemed income.
Pay advance tax
Pay 100% of the tax on presumptive income in one instalment by 15 March of the financial year.
File ITR-4
Report the presumptive income in ITR-4 (Sugam) — no books, no balance sheet, no tax audit required.
Key terms explained
Eligible assessee (44AD)
Only a resident individual, HUF or partnership firm can use 44AD. An LLP or company is excluded, and so are commission/agency businesses and the plying-hiring trade (which uses 44AE).
5-year lock-in
If you opt into 44AD and later declare lower profits within five years, you lose presumptive eligibility for the next five years and must maintain books and get a tax audit.
No books, no audit
Under presumptive taxation you are relieved from maintaining books of account under 44AA and from the tax audit under 44AB — as long as you declare income at or above the presumptive rate.
Advance tax by 15 March
Presumptive taxpayers escape the usual four advance-tax instalments and instead pay the entire advance tax in one shot by 15 March of the financial year.
Questions people ask
Short answers on Presumptive Tax Eligibility. Tap a question to open it.
01Who can opt for section 44AD?
A resident individual, HUF or partnership firm — not an LLP or a company — carrying on any business other than plying, hiring or leasing goods carriages, agency business, or a profession covered by section 44ADA, with turnover within the prescribed limit.
02Who can opt for 44ADA?
A resident individual or partnership firm carrying on a profession specified in section 44AA(1) — including legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, film artists and company secretaries — within the receipts limit.
03What does section 44AE cover?
Owners of goods carriages who do not own more than ten vehicles at any time in the year. Income is presumed at ₹1,000 per ton of gross vehicle weight per month for a heavy goods vehicle, and ₹7,500 per month for any other vehicle.
04Is advance tax payable under the presumptive schemes?
Yes, but in a single instalment by 15 March instead of four. Missing that date attracts interest under section 234C.
05Can a presumptive taxpayer claim depreciation or partner remuneration?
No. The presumed income is after all deductions including depreciation. Written down value is still deemed to have been reduced each year. Partner remuneration is no longer separately deductible from presumptive income for a firm.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.