Business taxes in India: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
Loading…
Legal forms
Sole proprietor Sole proprietorship
You run the business in your own name, without a separate legal entity, and are personally liable for all its debts. Business income is part of your personal income and is taxed at the slab rates.
Requirements
No company-law registration. GST: register once turnover exceeds INR 20 lakh; a supplier of goods only — up to INR 40 lakh where the State has raised the limit; inter-State supplies of goods require registration from the first sale (CGST Act, sections 22 and 24).
Books of account (section 62): for a business once income exceeds INR 2.5 lakh or turnover INR 25 lakh; the professions of section 62(4) have their own rules. Under a presumptive scheme, declaring less than the presumed income requires books and an audit.
Annual return: ITR-4 (Sugam) under a presumptive scheme, otherwise ITR-3.
Shop or office premises may need registration under the State Shops and Establishments Act and municipal trade licences — rules differ by State.
Profit (receipts minus expenses) is the owner's income, taxed at the section 202 slab rates of 0–30% plus 4% cess. Income up to INR 12 lakh is tax-free thanks to the section 156 rebate.
Conditions
GST: registration is required once annual turnover from services exceeds INR 20 lakh (2 million); GST is not included in the calculation.
Sole proprietorSole proprietorship — presumptive taxation of professions (Income-tax Act, 2025, section 58(2), Table Sl. No. 3; former section 44ADA)
Income is deemed to be 50% of gross receipts whatever the actual expenses (a higher amount may be declared voluntarily); detailed expense records are not needed. The section 202 slab rates and 4% cess then apply.
Conditions
Only for resident individuals (and firms other than LLPs) in the specified professions of section 62(4), which include information technology and technical consultancy.
Gross receipts limit: INR 75 lakh (7.5 million) if cash receipts are no more than 5%; otherwise INR 50 lakh. The calculation assumes clients pay by bank transfer.
GST: registration is required once annual turnover from services exceeds INR 20 lakh (2 million); GST is not included in the calculation.
Sole proprietorSole proprietorship — presumptive taxation of business (Income-tax Act, 2025, section 58(2), Table Sl. No. 1; former section 44AD)
Income is deemed to be 6% of turnover received through banks or online (8% of other receipts such as cash), whatever the actual expenses; a higher amount may be declared voluntarily. The section 202 slab rates and 4% cess then apply.
Conditions
For resident individuals, HUFs and firms (other than LLPs) carrying on a business — not a profession of section 62(4) (IT, engineering, accountancy, law, medicine etc.) — with no agency business and no commission or brokerage income.
Turnover limit: INR 3 crore if cash is no more than 5% of receipts, otherwise INR 2 crore. The calculation assumes all customers pay by bank transfer or UPI (6%).
Declaring profit below the presumed amount requires books and an audit, and you then cannot use the scheme for the next 5 years.
GST: suppliers of goods only register above INR 40 lakh (INR 20 lakh in States that have not raised the limit), suppliers of services above INR 20 lakh; GST is not included in the calculation.
Private limited / OPC Private limited company / One Person Company (Companies Act, 2013)
A separate legal entity; shareholders are liable only up to their share capital. A single owner uses a One Person Company (OPC); a private company needs at least two members.
Requirements
Incorporation online with the Ministry of Corporate Affairs (MCA); every year — financial statements and an annual return filed with the Registrar of Companies, with a mandatory audit.
Income-tax return ITR-6; the 22% rate (section 200) must be opted for by the return due date and cannot be withdrawn.
The company withholds 10% TDS from dividends paid to you; it is credited against your tax.
GST registration under the same thresholds as for a sole proprietor.
CompanyPrivate limited company / One Person Company (Companies Act, 2013) — tax under section 200 of the Income-tax Act, 2025
The company pays 22% tax + 10% surcharge + 4% cess (25.168% of profit in total). Dividends are added to the owner's income and taxed at the section 202 slab rates.
Conditions
A private company needs at least two members; a single owner uses a One Person Company (OPC). The tax is the same.
The 22% rate (section 200) must be opted for by the return due date; the company then gives up incentives and deductions, and the option cannot be withdrawn.
The company withholds 10% TDS from dividends; it is credited against the owner's tax. Surcharge on dividends is capped at 15%.
GST: registration is required once annual turnover from services exceeds INR 20 lakh (2 million); GST is not included in the calculation.
A separate legal entity with at least two partners; each partner's liability is limited to the agreed contribution. The LLP pays tax on its profit; partners' shares of that profit are not taxed again.
Requirements
Incorporation online with the MCA and an LLP agreement; every year — a statement of account and solvency and an annual return filed with the Registrar.
Income-tax return ITR-5; an LLP cannot use the presumptive schemes of section 58.
GST registration under the same thresholds as for a sole proprietor.
The LLP pays 30% of profit (+12% surcharge if profit exceeds INR 1 crore) and 4% cess. The partner's share of LLP profit is exempt.
Conditions
An LLP needs at least two partners; the second partner may hold a small share.
Remuneration and interest paid to working partners within the statutory limits reduce the LLP's profit and are taxed in the partner's hands; they are not included here.
An LLP cannot use the section 58 presumptive scheme.
GST: registration is required once annual turnover from services exceeds INR 20 lakh (2 million); GST is not included in the calculation.
Software development, IT services, consulting for companies and entrepreneurs.
IT is a profession under section 62(4): the presumptive scheme for professions applies — 50% of gross receipts up to INR 75 lakh (cash no more than 5%); the 6% / 8% business scheme is not available.
GST: register once turnover from services exceeds INR 20 lakh; a service supplier with turnover up to INR 50 lakh may choose composition tax — not more than 3% central tax plus the same State tax (CGST Act, section 10(2A)), with no inter-State supplies.
Company (22% + surcharge and cess) and LLP (30%) rates are the same in every sector; only the sole proprietor's presumptive schemes depend on the sector.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Engineering, architecture, accountancy, technical consultancy and interior decoration are professions under section 62(4): the 50% of receipts scheme. Marketing, design, translation and other services are a business: 6% (bank) / 8% (cash) of turnover up to INR 3 crore. Both forms are shown — use the one that matches your work.
GST: register once turnover from services exceeds INR 20 lakh; a service supplier with turnover up to INR 50 lakh may choose composition tax — not more than 3% central tax plus the same State tax (CGST Act, section 10(2A)), with no inter-State supplies.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Repairs, beauty, tutoring and photography are a business, not a profession of section 62(4): the 6% / 8% of turnover scheme up to INR 3 crore (INR 2 crore if cash exceeds 5% of receipts). Doctors and lawyers are professions (50% scheme).
Cash matters: cash receipts are deemed income at 8%, bank or UPI receipts at 6%; the calculator assumes all receipts are non-cash.
GST: register once turnover from services exceeds INR 20 lakh; a service supplier with turnover up to INR 50 lakh may choose composition tax — not more than 3% central tax plus the same State tax (CGST Act, section 10(2A)), with no inter-State supplies.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Business scheme: 6% (bank) / 8% (cash) of turnover, not of the margin. With a lower margin the regular regime is cheaper, but declaring less than the presumed income requires books and an audit and shuts you out of the scheme for 5 years.
GST: a supplier of goods only registers above INR 40 lakh where the State has raised the limit (otherwise above INR 20 lakh); selling goods to other States, including online, requires registration from the first sale (CGST Act, sections 22 and 24).
GST composition scheme for goods: turnover up to INR 1.5 crore, tax is a small percentage of turnover (for traders not more than 0.5% central tax plus the same State tax); not available for sales to other States.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Manufacturing is a business: the 6% / 8% of turnover scheme up to INR 3 crore, as in trade; declaring less than the presumed income requires books and an audit.
GST composition scheme for manufacturers: turnover up to INR 1.5 crore, not more than 1% central tax plus the same State tax; some goods notified by the Government are excluded.
GST: a supplier of goods only registers above INR 40 lakh where the State has raised the limit (otherwise above INR 20 lakh); selling goods to other States, including online, requires registration from the first sale (CGST Act, sections 22 and 24).
Company (22% + surcharge and cess) and LLP (30%) rates are the same in every sector; only the sole proprietor's presumptive schemes depend on the sector.
Assumptions
One owner, resident and ordinarily resident in India, no employees, no other income, no children; full tax year 2026-27 (1 April 2026 – 31 March 2027); New Delhi (no professional tax).
Individual tax under the default section 202 regime without deductions; section 156 rebate of up to INR 60,000 for income up to INR 12 lakh; surcharge with marginal relief; 4% Health and Education Cess.
The owner pays no mandatory social contributions (EPF covers employees only). GST is not included.
Company and LLP: the owner takes no salary or remuneration; the company has opted for section 200 (22%); profit after tax is either fully paid out as dividends or retained.
Presumptive business scheme (6% / 8%): all receipts arrive by bank transfer or UPI, so 6% of turnover and the INR 3 crore limit apply. The 'Other business services' sector covers both section 62(4) professions and ordinary business — both presumptive schemes are shown.
DoubleTaxation