1Which presumptive scheme can a digital marketer use?
44ADA (50% of receipts, within Rs 50 lakh) as a professional, or 44AD (8%/6%, within Rs 2 crore) for an agency business. Both skip audit and often reduce tax for those with modest costs.
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ArticleDigital marketers and agency owners earn professional or business income, often with large pass-through ad spend and clients paying after TDS. Here's how digital marketers can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Digital marketing is professional or business income — so presumptive schemes, ad-spend and tool claims, GST and advance tax are the levers. Here's how.
Depending on how your work is classified, you may use 44ADA (declare 50% of receipts, within Rs 50 lakh) as a marketing professional, or 44AD (declare 8%, or 6% on digital receipts, within Rs 2 crore) for an agency business. Both skip audit and detailed books and often reduce tax for those with modest costs.
If you bill clients for ad spend that you pass on to platforms, keep that separate from your service fee so your taxable income reflects your real margin, not gross billings. Pass-through ad spend isn't your income — mixing it in over-states your tax.
When you keep books, deduct software and SaaS subscriptions, freelancer and staff payments, a share of internet and home-office, devices (through depreciation), and your own marketing. These are substantial for an agency and directly reduce taxable profit.
Marketing services attract GST once turnover crosses the threshold, and services to foreign clients have their own export-of-service treatment that can be zero-rated with the right paperwork. Get registration and treatment right — it's separate from income tax but central to an agency.
Clients deduct TDS that appears in your 26AS/AIS — claim full credit for it. Estimate income after costs and pay advance tax in the four instalments if your tax exceeds Rs 10,000, to avoid 234B/234C interest.
44ADA (50% of receipts, within Rs 50 lakh) as a professional, or 44AD (8%/6%, within Rs 2 crore) for an agency business. Both skip audit and often reduce tax for those with modest costs.
No — pass-through ad spend you remit to platforms isn't your income. Separate it from your service fee so your taxable income reflects your real margin, not gross billings.
Services to foreign clients can be zero-rated as export of services with the right paperwork , while domestic services attract GST once turnover crosses the threshold. Get registration and treatment right.
Running campaigns or an agency? Write to the firm and we'll sort your presumptive choice, GST and advance tax.