Income tax for freelancers and consultants in India
Presumptive tax under 44ADA, advance tax dates, TDS on your fees and when GST kicks in.
What is presumptive taxation (section 44ADA)?
If you're in a specified profession, such as medicine, law, engineering, architecture, accountancy, technical consultancy or interior decoration, you can declare 50% of your gross receipts as profit and pay tax on that, without keeping detailed books. It's available for receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less.
Do I have to pay advance tax?
Yes, if your tax for the year will be ₹10,000 or more. Under 44ADA you can pay it all by 15 March. Otherwise it's due in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Paying late adds interest.
My clients deduct TDS. How do I get it back?
Clients in India usually deduct 10% of professional fees (2% for technical services) as TDS. It appears in your Form 26AS and AIS, and counts towards your tax when you file. If it's more than you owe, the extra is refunded.
When do I need GST registration?
When your turnover from services crosses ₹20 lakh in a year (₹10 lakh in some north-eastern and hill states). Services exported to clients abroad are zero-rated, which usually means no GST to pay, but they still count towards the limit.
Which ITR form do I file?
ITR-4 if you use presumptive taxation and your total income is up to ₹50 lakh. ITR-3 if you keep books and declare your actual profit, or can't use ITR-4 for another reason.
Free tools for you
Which ITR form should I file?
Find out if you must file, and which form fits.
Freelancer tax calculator
Your tax under 44ADA and how much advance tax to pay by each date.
GST Invoice Generator
Bill clients with a proper tax invoice.
GST Calculator
Add GST to your invoice and see the split.
SIP Calculator
Plan investments from irregular income.
Retirement Calculator
No employer PF? Work out the corpus you need.