# Presumptive Tax Calculator 44AD: FY 2026-27 > Presumptive tax calculator 44AD: 6% of digital and 8% of cash turnover as profit, the INR 2 crore or INR 3 crore limit, and tax in both regimes for FY 2026-27. Source: https://trykosh.com/tools/presumptive-tax-calculator Free tool - Business and GST # Presumptive tax calculator for small businesses (44AD) Small traders and businesses can skip detailed books and pay tax on a fixed share of turnover. This calculator works out that deemed profit and the tax on it under both regimes for FY 2026-27. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax on presumptive income INR 1,07,328 New regime - presumptive income INR 14,88,000 (6.05% of turnover) New regime**INR 1,07,328** Old regime**INR 2,14,656** Turnover limit**INR 3 crore** Digital receipts x 6% INR 14,40,000 Cash receipts x 8% INR 48,000 Minimum presumptive income INR 14,88,000 Income declared INR 14,88,000 \+ Other income INR 0 Taxable income (new regime) INR 14,88,000 Tax including cess INR 1,07,328 Advance tax: all of it by 15 March 2027 INR 1,07,328 Cash is 2.4% of your receipts, so your limit is INR 3 crore. Keeping cash at or under 5% unlocks the INR 3 crore limit. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-presumptive-tax-calculator) ## How the presumptive tax calculator (44AD) works Under the presumptive scheme, known for years as section 44AD and carried into section 58 of the Income-tax Act, 2025, an eligible business declares at least 8% of its turnover as profit, or 6% of the part received through banking channels: cheque, bank transfer, UPI or card. You can declare more if your real profit is higher, but not less without keeping books and getting an audit. The scheme is open to resident individuals, HUFs and partnership firms (not LLPs), for businesses with turnover up to INR 2 crore. The limit rises to INR 3 crore if cash receipts are no more than 5% of the year's total. It doesn't cover commission or brokerage income, agency business, or professions such as medicine, law and accountancy, which have their own scheme. The deemed profit plus any other income is your total income. The calculator runs it through the FY 2026-27 slabs in both regimes. In the new regime, income up to INR 12 lakh is tax-free after the 87A rebate; the old regime lets you deduct 80C and 80D. There is no standard deduction, because that is only for salary. Presumptive taxpayers pay all their advance tax in one instalment by 15 March. Pay it by then and no interest under the advance-tax rules applies, even if you paid nothing earlier in the year. Presumptive income = 6% x digital receipts + 8% x cash receipts (or more, if declared) Limit INR 2 crore turnover; INR 3 crore if cash receipts ≤ 5% of the total ## Worked example: Gurpreet, auto-parts dealer in Ludhiana Gurpreet's shop turned over INR 1.1 crore: INR 95 lakh by UPI and bank, INR 15 lakh in cash. His presumptive income is 6% of INR 95 lakh (INR 5.7 lakh) plus 8% of INR 15 lakh (INR 1.2 lakh), so INR 6.9 lakh. With INR 1.5 lakh of FD interest, total income is INR 8.4 lakh. In the new regime the 87A rebate wipes out the tax entirely, against INR 47,320 in the old regime. Because cash is 13.6% of his receipts, his limit is INR 2 crore, not INR 3 crore. Tax on presumptive income INR 0 New regime - presumptive income INR 6,90,000 (6.27% of turnover) New regime**INR 0** Old regime**INR 47,320** Turnover limit**INR 2 crore** Digital receipts x 6% INR 5,70,000 Cash receipts x 8% INR 1,20,000 Minimum presumptive income INR 6,90,000 Income declared INR 6,90,000 \+ Other income INR 1,50,000 Taxable income (new regime) INR 8,40,000 − 87A rebate INR 24,000 Tax including cess INR 0 Advance tax: all of it by 15 March 2027 INR 0 Cash is 13.6% of your receipts, so your limit is INR 2 crore. Cut cash receipts to 5% or less and the limit rises to INR 3 crore. [Load this example into the calculator ->](?digital=9500000&cash=1500000&other=150000#calculator) ## Good to know - Once you opt in, stay for five years. If you drop out within that time and declare a lower profit, you can't come back for the next five years, and you'll need books and an audit while your income is above the basic exemption. - Even under the scheme, you must still pay GST, file GST returns and keep basic records of turnover, cash and bank. - Partners' salary and interest from the firm aren't deductible from a presumptive firm's deemed profit under the current rules. Check the treatment before choosing the scheme for a firm. - Switching regimes is more restricted for business income: once you opt out of the new regime, you can come back to it only once in your lifetime. ## Frequently asked questions What is the turnover limit for 44AD in FY 2026-27? INR 2 crore, or INR 3 crore if your cash receipts during the year are no more than 5% of total receipts. Above these limits you must keep books and, in most cases, get a tax audit. Is 6% or 8% applied on 44AD turnover? 6% applies to turnover received by account-payee cheque, bank transfer, UPI, card or other electronic modes by the due date of filing. 8% applies to cash receipts and to anything not received by then. Many businesses have a mix, so their deemed profit falls between 6% and 8%. Do I need an audit under the presumptive scheme? Not if you declare at least the presumptive profit. You need an audit if you declare less, and your total income is above the basic exemption limit, or if you leave the scheme within five years with income above that limit. Can freelancers use 44AD? No, professionals such as engineers, architects, designers, consultants and doctors are excluded from 44AD. They have a separate scheme, 44ADA, under which half their gross receipts are treated as profit. When is advance tax due under 44AD? All of it is due by 15 March of the financial year, in one instalment. For FY 2026-27 that's 15 March 2027. Missing it attracts 1% a month interest on the shortfall. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Union Budget 2026-27](https://www.indiabudget.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.