Presumptive Tax Calculator (44AD/44ADA)

Section 44AD (for professionals) and 44ADA (for traders) allow self-employed individuals with gross receipts below specified thresholds to compute income as 8% of receipts for professionals or 6% of receipts for traders, instead of showing actual business profit/loss. This presumptive taxation simplifies compliance for small businesses, eliminating need for maintaining detailed accounts and reduces audit risk. The simplified return filing through this method allows businesses to claim estimated 8-6% profit regardless of actual profitability, benefiting businesses with genuine lower margins. This calculator helps small business owners determine if presumptive taxation is beneficial, comparing it with normal profit computation methods. Many small traders find presumptive taxation attractive for simplicity despite potentially paying slightly higher tax, valuing reduced compliance burden.