Freelancer Tax Calculator

Section 44ADA is a presumptive taxation scheme for professionals (freelancers, consultants, doctors, lawyers, etc.) with gross receipts up to ₹75 lakh. Under 44ADA, 50% of gross income is treated as taxable profit — no need to maintain detailed books of accounts or get audited. This means if you earn ₹20L, only ₹10L is taxable.

GST registration is mandatory if your annual turnover exceeds ₹20 lakh (₹10 lakh for NE states). Professional services attract 18% GST. You can claim input tax credit on business expenses (internet, software, equipment). If turnover is below ₹20L, GST registration is optional but may be beneficial for input credits.

If your total tax liability exceeds ₹10,000 in a financial year, you must pay advance tax in 4 installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Late payment attracts interest at 1% per month under Section 234C. Under 44ADA, you can pay entire advance tax by March 15.

It depends on your deductions. New regime (2025-26) has lower slabs with no deductions. Old regime allows 80C (₹1.5L), HRA, LTA, NPS, and health insurance deductions. If your total deductions exceed ₹3-4L, old regime is usually better. For freelancers using 44ADA with minimal deductions, new regime often wins.

Under normal computation (not 44ADA), freelancers can claim: office rent, internet/phone bills, computer/equipment depreciation, software subscriptions, co-working space fees, travel for work, professional development courses, and health insurance premiums. Under 44ADA, no individual expense claims needed — flat 50% is deemed as expenses.