Section 58 (44ADA) tax calculator, FY 2026-27
Short answer
- Section 58 (formerly 44ADA): 50% of gross receipts is your taxable professional income, for receipts up to ₹50 lakh (₹75 lakh if cash is at most 5%).
- New regime: nil tax up to ₹12 lakh total income after the Section 156 rebate.
- Pay all advance tax in one instalment by 15 March 2027 if it's ₹10,000 or more after TDS.
Example: ₹30,00,000 receipts
₹1,09,200
Pay by 15 March 2027. Change the numbers above to see yours.
- Surcharge (total income above ₹50 lakh) is not calculated; you'll see a warning.
- Marginal relief on the ₹12 lakh rebate is included. Marginal relief on surcharge is not.
- Old regime, deductions, capital gains at special rates, and interest for late or short payment are not calculated.
- Section 58's professional scheme covers specified professions (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and notified ones). Check that your work qualifies.
Is 44ADA replaced by Section 58?
Yes. From 1 April 2026, Section 58 of the Income-tax Act, 2025 restates the old presumptive schemes with the same 50% rate and limits. Full guide: 44ADA is now Section 58.
What is the Section 58 limit for FY 2026-27?
₹50 lakh of gross receipts, or ₹75 lakh if cash receipts are no more than 5% of the total.
How it's worked out
| Taxable income (new regime, s.202) | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Then: rebate under s.156 (old 87A) of up to ₹60,000 if total income is ₹12 lakh or less, with marginal relief just above; plus 4% health and education cess; minus TDS. If what's left is ₹10,000 or more, pay it all by 15 March 2027.
Worked examples
| Receipts | Income (50%) | Tax incl. cess |
|---|---|---|
| ₹20,00,000 | ₹10,00,000 | ₹0 |
| ₹24,40,000 | ₹12,20,000 | ₹20,800 (marginal relief) |
| ₹30,00,000 | ₹15,00,000 | ₹1,09,200 |
| ₹60,00,000 | ₹30,00,000 | ₹4,99,200 |
Questions
Is 44ADA replaced by Section 58?
Yes, from tax year 2026-27 (1 April 2026). Section 58 of the Income-tax Act, 2025 restates 44AD, 44ADA and 44AE. For professionals, 50% of gross receipts is still deemed income.
What is the Section 58 limit for FY 2026-27?
Gross receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are at most 5% of the total. The same as 44ADA.
When is advance tax due under Section 58?
In one instalment on or before 15 March 2027 for tax year 2026-27, under Section 408(2).
Do I pay advance tax if my tax is under ₹10,000?
No. Advance tax applies only when tax for the year, after TDS, is ₹10,000 or more.
Is income up to ₹12 lakh tax-free for freelancers?
Under the new regime, the Section 156 rebate (old 87A) makes tax nil when total income is up to ₹12 lakh. With 50% presumptive income, that's roughly ₹24 lakh of receipts. The ₹75,000 standard deduction is for salary only.
Can I use Section 58 with a salary?
Yes. Salary is taxed under its own head; presumptive income applies only to your professional receipts. Add both for slab tax. TDS on salary reduces what you pay as advance tax.
Sources
- CBDT, FAQs on Interplay and Transition (Q2.15, Q2.20): www.incometaxindia.gov.in
- Income-tax Act, 2025 as amended by Finance Act 2026: www.incometaxindia.gov.in
- SS Chandak & Co: Income-tax Act 2025 guide for FY 2026-27 (slabs, s.156 rebate, Section 58 limits): sschandak.com
- Economic Times: presumptive taxation under the new Act, the 50% rule remains: economictimes.indiatimes.com