1Can therapists use the 44ADA presumptive scheme?
Yes — psychology and counselling are professional services under 44ADA. With receipts within Rs 50 lakh (Rs 75 lakh where cash is 5% or less), declare 50% as income with no audit or detailed books.
Home -> Articles
ArticlePsychologists, counsellors and therapists in private practice earn professional income, often a mix of in-person and online sessions. Here's how mental-health professionals can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Therapists earn professional income — so 44ADA, practice-expense claims, NPS and advance tax are the levers. Here's the guide.
With professional receipts within Rs 50 lakh (Rs 75 lakh where cash is 5% or less), Section 44ADA lets you declare 50% of receipts as income — no audit, no detailed books. For most independent therapists with modest costs, this is the simplest and most tax-efficient route.
If you keep books instead, deduct clinic or co-working rent, teletherapy platform and software subscriptions, supervision and training fees, professional memberships, and a share of internet and phone. If costs exceed 50% of receipts, actuals save more than presumptive.
Use 80C up to Rs 1,50,000, 80D health insurance (Rs 25,000, plus up to Rs 50,000 for senior parents), and home-loan interest up to Rs 2,00,000 under Section 24(b). Compare the total against the new regime each year.
The Rs 50,000 NPS deduction under 80CCD(1B) sits above your 80C limit — a tax-efficient way for a self-employed therapist without an employer pension to build a retirement corpus.
With no employer TDS, pay advance tax across the four instalments if your tax exceeds Rs 10,000, to avoid 234B/234C interest. Estimate your practice income early so a busy year doesn't create an interest bill.
Yes — psychology and counselling are professional services under 44ADA. With receipts within Rs 50 lakh (Rs 75 lakh where cash is 5% or less), declare 50% as income with no audit or detailed books.
Yes, when you keep books — teletherapy platforms, software, supervision, training and memberships are deductible , along with rent and a share of internet and phone.
Yes, if total tax for the year exceeds Rs 10,000. With no employer TDS, pay across the four instalments to avoid 1%-a-month interest under 234B/234C.
Running a therapy or counselling practice? Write to the firm and we'll set up your presumptive-vs-actual call and advance tax.