Tax for painters and decorators in India

Painting and decorating is a business, so use presumptive Section 44AD (6 percent digital, 8 percent other), not the 50 percent professional scheme under 44ADA. GST registration applies at Rs 20 lakh of service turnover, painting works-contract is generally 18 percent with input credit, and builders deduct 194C TDS (1 percent for individuals) on subcontracts.

Presumptive + GST + TDS at a glance

Presumptive taxation

Section:: Sec 44AD
Deemed profit rate:: 6 percent on digital receipts / 8 percent on other receipts
Classification:: business

GST treatment

Slab:: 18%
SAC:: 9954 (works-contract / painting services)
Composition eligible:: Yes
Reverse charge (RCM):: Not applicable

TDS exposure

Last reviewed: 29 May 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

Painting and decorating in India is a business, so presumptive taxation under Section 44AD (a deemed 6 percent of digital receipts or 8 percent of other receipts) is the simplest fit, not Section 44ADA, which is for specified professionals only. GST registration applies at Rs 20 lakh of service turnover, painting works-contract is generally taxed at 18 percent with input credit on paint and materials, and builders deduct TDS under Section 194C when you subcontract.

What business structure do painters and decorators use?

The common patterns for painters and decorators are: Sole proprietor, simplest, suits most painters on presumptive 44AD, Partnership or LLP, for a painting crew sharing capital and liability, Private limited, for larger commercial finishing contractors. The right structure depends on revenue, liability exposure, and personal circumstances, covered below.

Painters use Section 44AD, not 44ADA

A painter runs a business, so the presumptive scheme is Section 44AD: a deemed 8 percent of turnover, or 6 percent on digital receipts, with no detailed books or audit within the limits. Section 44ADA (50 percent of receipts) is for specified professionals and does not apply. The 44AD ceiling is Rs 2 crore, or Rs 3 crore where cash receipts are 5 percent or less. Take payment digitally to lift the limit and lower the rate, and remember the five-year lock-out under Section 44AD(4) if you opt out after opting in.

A painter (a business) declares deemed profit of 6 or 8 percent under Section 44AD; the 50 percent professional scheme does not apply to trades. (Income-tax Act 1961 s.44AD (Income-tax Act 2025 s.58))

GST on painting works-contract

Register for GST at Rs 20 lakh of service turnover. Painting and decorating jobs that include materials are works-contract services taxed at 18 percent with input credit on paint, primer and consumables. A composition option at 6 percent (no input credit) is available up to Rs 50 lakh turnover. Charge GST normally on subcontract invoices to builders; there is no special construction reverse charge on ordinary painting labour.

GST registration at Rs 20 lakh; painting works-contract is 18 percent with input credit, or 6 percent composition without credit. (CGST Act 2017 ss.22-24 + s.10; SAC 9954)

194C TDS on subcontract work

When a builder or business pays you as a subcontractor, it deducts TDS under Section 194C at 1 percent (individual or HUF) or 2 percent (others), above Rs 30,000 single or Rs 1,00,000 aggregate in the year. Quote your PAN to keep the rate at 1 or 2 percent, and reconcile the credit in Form 26AS and AIS against your final tax.

A business paying a painter-subcontractor deducts 1 or 2 percent TDS under Section 194C above the thresholds. (Income-tax Act 1961 s.194C (Income-tax Act 2025 s.393))

Allowable expenses

Category	Examples	Tax treatment
Tools and equipment	Brushes, rollers, spray gun, scaffolding, ladders, drop sheets	Deductible; subsumed in deemed profit under 44AD
Materials (cost of sale)	Paint, primer, putty, thinner, tape, sandpaper	Cost of sale; GST input credit if registered (non-composition)
Labour (crew wages)	Daily-wage helpers and painters on a job	Deductible if keeping books; watch cash-wage limits under 40A(3)
Work vehicle and fuel	Bike or van, fuel, servicing	Deductible if keeping books; in deemed profit under 44AD
Insurance and safety	Liability cover, height-work accident cover, PPE	Deductible; health premium separately under 80D
GST and admin	Accountant, GST filing, invoicing tools, phone	Deductible (apportion personal phone use)

Vehicle and travel costs

Under regular books a work vehicle attracts depreciation (plant-and-machinery block, Section 32) plus running costs. Under presumptive Section 44AD depreciation is treated as already allowed within the deemed profit, and the written-down value still reduces for a future sale. Most small painters find 44AD simpler than actual-cost tracking.

Capital allowances and equipment

On regular books, spray equipment, scaffolding and a work vehicle depreciate in the plant-and-machinery block (generally 15 percent WDV). Under Section 44AD no separate depreciation is claimed, but keep invoices so the written-down value is correct on any later sale.

Worked example

Joseph — Kochi, KL

sole-proprietor painter with a two-person crew (2026-27)

Annual receipts Rs 22 lakh, mostly digital. About Rs 8 lakh is builder subcontract work with 194C TDS at 1 percent. He pays two helpers and is GST-registered.

With cash under 5 percent he uses the Rs 3 crore 44AD limit and 6 percent rate. Deemed profit: 6 percent of Rs 22 lakh = Rs 1,32,000, below the Rs 4 lakh new-regime exemption, so income tax is nil; he files and reclaims the Rs 8,000 of 194C TDS. He charges 18 percent GST with input credit on paint, and pays crew wages by bank transfer to avoid the Section 40A(3) cash-wage disallowance. Advance tax, if any, is a single 15 March instalment.

Common audit triggers for painters and decorators

Cash receipts over 5 percent of turnover while using the Rs 3 crore 44AD limit
Cash receipt of Rs 2 lakh or more from one party in a day (Section 269ST)
Cash wages to crew over Rs 10,000 per person per day (Section 40A(3) disallowance)
GST turnover not matching the 44AD turnover in the return
No GST registration after crossing Rs 20 lakh service turnover
194C TDS credit in 26AS or AIS not reconciled with income reported

Frequently asked questions

Is a painter a professional for 44ADA?+

No. Painting is a business, not a notified profession, so the presumptive scheme is Section 44AD (deemed 6 or 8 percent of turnover), not the 50 percent scheme under 44ADA. Anyone applying 44ADA to a painter is misreading the law and would overstate the tax.

How should I pay my crew?+

By bank transfer or UPI where you can. A cash payment over Rs 10,000 to one person in a single day is disallowed as a business expense under Section 40A(3), so cash wages above that threshold cannot be claimed. Paying digitally keeps the wages deductible and your records clean.

What GST applies to my painting jobs?+

Painting and decorating jobs that include materials are works-contract services, generally taxed at 18 percent with input credit on paint and consumables. You must register once service turnover crosses Rs 20 lakh. A 6 percent composition option exists up to Rs 50 lakh if you prefer simplicity over claiming input credit.

How do I keep tax simple as a small painting business?+

Use Section 44AD presumptive taxation: declare a deemed 6 or 8 percent of turnover, keep no detailed books within the limits, and pay advance tax once by 15 March. Take payment digitally to stay under the 5 percent cash condition for the higher Rs 3 crore limit and lower 6 percent rate.

Last reviewed: 29 May 2026