Freelancer Tax Calculator (FY 2026-27)
For Indian freelancers, consultants, and self-employed professionals. Compares Presumptive 44ADA/44AD (declare 50%/8% of gross as profit, no books needed) vs Regular books (claim actual expenses). Picks the lower-tax option.
Methodology. 44ADA (professionals): If gross professional receipts ≤ ₹75L (raised in Budget 2024), declare 50% as profit, no books needed, simpler return. 44AD (businesses): If gross turnover ≤ ₹3Cr (Budget 2024 raised this for digital-payment-heavy businesses), declare 8% as deemed profit (6% if all receipts via digital). Regular books: claim actual expenses but maintain detailed accounts + face possible audit if turnover > ₹1Cr (₹10Cr digital). Tax calculated under both new and old regimes; this calculator picks the lower. Once you opt OUT of 44ADA, you must stay out for 5 years.
Presumptive scheme vs regular books
Professionals such as consultants, designers, developers, doctors and lawyers can opt for presumptive taxation: you declare 50% of gross receipts as profit and pay tax on that, without maintaining detailed books. This was section 44ADA; from 1 April 2026 it sits in section 58 of the Income-tax Act, 2025. It is available up to ₹75 lakh of receipts if cash receipts are no more than 5% of the total (₹50 lakh otherwise). Small businesses have a similar scheme at 8% of turnover (6% for digital receipts).
Worked example (new regime, FY 2026-27)
| Method | Taxable income | Tax incl. 4% cess |
|---|---|---|
| Presumptive: 50% of ₹30 lakh receipts | ₹15 lakh | ≈ ₹1,09,200 |
| Regular books: ₹30 lakh minus ₹6 lakh actual expenses | ₹24 lakh | ≈ ₹3,12,000 |
Presumptive wins whenever your real expenses are below 50% of receipts, which is true for most service freelancers. If your genuine costs are higher, regular books with an audit may cost less in tax.
Other things freelancers must handle
- Advance tax: presumptive taxpayers can pay 100% by 15 March — use the advance tax calculator.
- TDS credits: clients deduct 10% on fees above ₹50,000; claim it against your tax.
- GST: registration is generally required once service turnover crosses ₹20 lakh in a year.
- ITR form: ITR-4 for presumptive income in most cases.
Read more in our guides to presumptive taxation and creator income tax.
FAQs
Can I claim expenses under the presumptive scheme?
No — the 50% is deemed to cover all expenses, including depreciation.
What if I declare less than 50%?
You then need to maintain books and get them audited if income is above the basic exemption limit.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.