How is tax calculated for freelancers under section 44ADA?

You declare at least 50% of your gross receipts as profit and pay tax on that at your slab rate. It's available to specified professionals with receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less.

When is advance tax due for freelancers?

If your tax after TDS will be ₹10,000 or more, you must pay advance tax. Under presumptive taxation (44ADA or 44AD) you can pay the full amount by 15 March. Otherwise it's 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March.

What happens if I miss an advance-tax date?

You pay simple interest of 1% a month on the shortfall: under section 234C for a missed instalment, and section 234B if less than 90% of your tax is paid by 31 March.

Can a freelancer choose the old tax regime?

Yes, but with business or professional income you can switch from the new regime to the old one and back again only once in your lifetime, so compare carefully before you opt out.

Freelancer & business tax calculator

Estimate your tax for FY 2026-27 under presumptive taxation, see which regime costs less, and find out exactly how much advance tax to pay by each date.

How do you earn?

Freelancer or professional (44ADA) Business or trade (44AD) I keep books (actual profit)

This year's business income

Gross receipts or turnover for the year (₹)Your best estimate for the full year, April to March.

Profit you'll declare (₹, optional)Presumptive: leave blank to use the minimum (50% for 44ADA, 6–8% for 44AD). Books: enter your actual profit.

Share received digitally (%)Bank transfer, UPI or cheque. Taxed on 6% instead of 8%.

Cash receipts are 5% or less of the total This raises the presumptive limit (₹75 lakh for 44ADA, ₹3 crore for 44AD).

Other income and deductions

Salary or pension (₹, yearly)

Interest and other income (₹)

Old-regime deductions (₹)80C, 80D, NPS and so on, added together. Ignored in the new regime.

Your age

Tax already covered

TDS deducted this year (₹)From clients, your bank and employer. See Form 26AS or AIS. Include what you expect for the rest of the year.

Advance tax already paid (₹)

Your figures are only used to work this out. They aren't saved or put in the page address.

Get an email before each advance-tax date

Create a free account and we'll email you a week before each date, so you don't pay 1% a month in interest.

Rates for FY 2025-26, unchanged for FY 2026-27. Doesn't include capital gains or other special-rate income, or marginal relief on surcharge. An estimate, not tax advice. Not sure which form to file? Check which ITR form.

Frequently asked questions

How is tax calculated for freelancers under section 44ADA?: You declare at least 50% of your gross receipts as profit and pay tax on that at your slab rate. It's available to specified professionals with receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less.
When is advance tax due for freelancers?: If your tax after TDS will be ₹10,000 or more, you must pay advance tax. Under presumptive taxation (44ADA or 44AD) you can pay the full amount by 15 March. Otherwise it's 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March.
What happens if I miss an advance-tax date?: You pay simple interest of 1% a month on the shortfall: under section 234C for a missed instalment, and section 234B if less than 90% of your tax is paid by 31 March.
Can a freelancer choose the old tax regime?: Yes, but with business or professional income you can switch from the new regime to the old one and back again only once in your lifetime, so compare carefully before you opt out.