Salaried vs Business Tax — Illustrated

Q: What is the difference between 44AD and 44ADA?

44AD is for small businesses (about 6% of digital turnover deemed profit); 44ADA is for specified professionals (50% of gross receipts deemed profit). Both skip books and audit below turnover limits.

All math runs on your device — nothing is sent or saved. Last updated: October 2026.

Same ₹10L in hand, taxed two ways. Educational comparison, not a precise business-tax tool.

Annual receipts / salary (₹)

₹

Salaried tax (new regime)

₹0

TDS via employer · ITR-1/2

44AD business (6% digital profit)

₹0

Profit ₹60,000 · ITR-4

44ADA professional (50% profit)

₹0

Profit ₹5,00,000 · ITR-4

Business: no employer TDS — pay advance tax yourself (15 Jun / 15 Sep / 15 Dec / 15 Mar) if yearly liability exceeds ₹10,000, else 234B/234C interest. ITR-3/ITR-4; salaried use ITR-1/ITR-2.

What is this tool?

This educational tool puts the same annual receipts through two worlds: salaried (employer TDS, new-regime slabs, ITR-1/ITR-2) versus business under the 44AD presumptive scheme (6% of digital turnover deemed profit) and 44ADA for professionals (50% of receipts deemed profit). It shows why a freelancer keeps more at first glance — and the advance-tax duty that comes with it.

How to use this calculator

Enter your annual receipts (or salary) at the top — try ₹10,00,000 to see the classic comparison.
Compare the three cards. 44AD/44ADA profits are deemed figures the law lets small taxpayers declare without books.
Read the advance-tax strip: no employer means YOU pay in 4 instalments if yearly tax crosses ₹10,000.

Salary vs business questions

44AD aur 44ADA mein kya fark hai? / What is the difference between 44AD and 44ADA?

44AD is for small businesses (~6% of digital turnover deemed profit); 44ADA is for specified professionals (50% of gross receipts deemed profit). Both skip books and audit below turnover limits.

Freelancer ko advance tax kab bharna hai? / When does a freelancer pay advance tax?

15 June, 15 September, 15 December and 15 March, whenever yearly liability exceeds ₹10,000 — otherwise interest under 234B/234C. Salaried people never face this because TDS covers them.

Which ITR form should a freelancer file?

ITR-4 for presumptive (44AD/44ADA) income, ITR-3 for regular business income with books. Salaried-only income uses ITR-1/ITR-2.

Read the full Income Tax Guide →

Estimate for tax-planning guidance only — not tax advice. Slabs change almost every Budget (verify each March). Confirm on incometax.gov.in or with a tax professional before filing.