What is section 44ADA presumptive taxation?

A scheme for eligible professionals: half of gross receipts are deemed profit, no expense bookkeeping is needed for tax, and advance tax is a single instalment due by 15 March. The ceiling is 50 lakh, rising to 75 lakh when cash is no more than 5% of receipts. From 1 April 2026 the scheme moved from section 44ADA to section 58 of the Income-tax Act, 2025, with the rules unchanged.

Is section 44ADA still valid, or is it section 58 now?

Both names describe the same scheme. The Income-tax Act, 2025 took effect on 1 April 2026 and merged sections 44AD, 44ADA and 44AE into a single section 58, with professionals at serial 3 of its table. The 50% presumption, the eligibility tests and the single 15 March advance-tax instalment are unchanged. Forms, portals and accountants still say 44ADA.

When is advance tax due for freelancers in India?

If your tax liability is ₹10,000 or more: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Under presumptive taxation the whole amount is due in one instalment by 15 March. When paying on the portal, choose Tax Year 2026-27; the assessment year was abolished on 1 April 2026.

Should a freelancer choose the new or old tax regime?

For most freelancers without large deductions the new regime works out lower, but it depends on your numbers. This calculator shows both side by side; confirm with a chartered accountant before filing.

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For Indian freelancers and professionals, FY 2026-27. New versus old regime, section 44ADA presumptive taxation, and your advance-tax dates with the amounts filled in.

These are the rules for FY 2026-27 under the Income-tax Act, 2025, which took effect on 1 April 2026. It renumbered section 44ADA to section 58 without changing how it works. If you are filing for FY 2025-26, the old Act still applies to that year.

Gross receipts for FY 2026-27

₹

Presumptive (44ADA, now section 58)

Half your receipts deemed profit; no expense books needed for tax. Eligible professionals up to ₹75L.

Of that, received in cash

₹

The ₹75L ceiling only holds while cash is 5% or less of your receipts. Above that the limit is ₹50L.

A planning estimate for resident individual freelancers. Ignores other income, deductions like 80C, TDS already deducted, and surcharge above ₹50L taxable. Your CA has the last word.

New regime

Lower

₹0

0.0% of gross receipts

Old regime

₹1,17,000

5.9% of gross receipts

How the new regime figure is built

Taxable income₹10,00,000

Tax by slabs₹40,000

Rebate (87A)−₹40,000

Health & education cess (4%)₹0

Total tax₹0

On regular books basis (income minus expenses) you'd owe ₹2,08,000 instead. 44ADA is the win here.

Advance tax, FY 2026-27

Liability under ₹10,000, so no advance-tax instalments apply.

You just typed guesses. CleanTab knows the real numbers.

It reads your receipts as you go, tracks income, and runs this exact calculation all year on your actual figures, then hands your CA one tidy Drive folder in March.

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