Freelancer Tax Calculator — Section 44ADA

If you freelance or consult in India, you can declare half your receipts as income and pay tax only on that. This works out what you owe, what to set aside each month, and whether you need to register for GST.

Annual gross receipts (₹)

Everything clients paid you, before expenses

Actual business expenses (₹)

For comparing against normal (non-presumptive) filing

Share of receipts from foreign clients

Exports of services are zero-rated under GST

Other income (₹)

Interest, rent, salary — added to the same return

What 44ADA actually is

Section 44ADA lets specified professionals — software, design, writing, legal, medical, accountancy, technical consulting — declare 50% of gross receipts as taxable profit and skip maintaining full books. The other 50% is treated as expenses whether you spent it or not. The ceiling is ₹50 lakh, raised to ₹75 lakh if 95% or more of your receipts come through banking channels, which for most online freelancers they do.

It is worth using when your real expenses are under half your receipts. If you spend more than that — heavy subcontracting, equipment, office rent — normal filing with an audit may cost you less. The comparison row below shows which side you fall on.

The trap nobody mentions. Opting out of 44ADA after using it locks you out for the next five assessment years. Do not switch back and forth year to year based on which is cheaper this time.

Advance tax

If your total tax for the year exceeds ₹10,000, you owe advance tax. Presumptive filers get a single deadline: the full amount by 15 March. Miss it and interest runs under sections 234B and 234C. The monthly set-aside figure above is the amount to move into a separate account each month so March is not a shock.

Do I need GST registration?: Services cross the threshold at ₹20 lakh turnover a year (₹10 lakh in some special category states). Exports are zero-rated but still count toward the threshold, and if you export you may need an LUT to avoid paying IGST upfront.
Which ITR form?: ITR-4 (Sugam) for presumptive income. ITR-3 if you file normally with books.
Does a client's TDS deduction cover this?: No. Clients deduct 10% TDS under 194J. That is a prepayment credited against your final bill, not the bill itself.