For freelancers, consultants, and professionals under Section 44ADA, 50% of gross receipts is deemed taxable profit regardless of actual expenses — this calculates the resulting tax and flags if receipts exceed the scheme's threshold.
Deemed profit = 50% of gross receipts, taxed under the chosen regime's slabs — no need to track actual expenses. The scheme's threshold is ₹75 lakh if at least 95% of receipts are digital (bank transfer, UPI, cheque), or ₹50 lakh otherwise; receipts above that threshold fall outside 44ADA and require regular books of account instead.
Resident individuals, HUFs, and partnership firms (not LLPs) engaged in specified professions — legal, medical, engineering, architecture, accountancy, technical consultancy, IT, and similar — with gross receipts within the threshold.
You can still declare actual profit instead of the deemed 50%, but doing so for less than the deemed rate in a year, after having used 44ADA, can restrict access to the scheme for the following five years and may require maintaining full books and an audit — worth weighing carefully rather than defaulting to actual profit.
Yes — 44ADA filers must pay their entire estimated tax liability in one instalment by 15 March (not the quarterly schedule salaried/regular business taxpayers follow), or in advance instalments if paying earlier voluntarily.
Figures are estimates for informational purposes only, based on the assumptions you enter, and are not tax advice. Consult a Chartered Accountant or the Income Tax e-filing portal before filing.