Section 44ADA tax calculator for freelancers
Half of what you bill is treated as profit, no books, no audit. Type your receipts and see the tax, what clients already deducted as TDS, and what to pay by 15 March.
Last updated 14 October 2026
How the tax is worked out
- Deemed profit. Under Section 44ADA (Section 58 of the Income-tax Act, 2025, in force since 1 April 2026) a freelancer in a specified profession declares 50% of gross receipts as profit. No expense list, no books of account, no audit. You may declare more than 50%; you cannot declare less without an audit.
- Total income. Deemed profit plus other income (interest, rent, salary after the standard deduction) minus, in the old regime only, the deductions you claim.
- Slabs. New regime: nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps, 30% above ₹24 lakh. Old regime: nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above.
- Rebate. New regime: up to ₹60,000 off if total income is ₹12 lakh or less, so nothing is payable up to ₹12 lakh (₹24 lakh of receipts). Just above that, marginal relief caps the tax at the amount by which income exceeds ₹12 lakh. Old regime: ₹12,500 rebate up to ₹5 lakh.
- Surcharge and cess. Surcharge of 10% on tax above ₹50 lakh of income, 15% above ₹1 crore, 25% above ₹2 crore (old regime adds 37% above ₹5 crore). Then 4% health and education cess on everything.
- Minus TDS. What clients deducted under Section 194J is tax you have already paid. The balance is your advance tax.
FY 2026-27 slabs used
| New regime | Rate | Old regime | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹2,50,001 to ₹5,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹12,00,001 to ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 to ₹20,00,000 | 20% | Rebate (87A / 156) | ₹12,500 up to ₹5 lakh |
| ₹20,00,001 to ₹24,00,000 | 25% | Standard deduction on salary | ₹50,000 |
| Above ₹24,00,000 | 30% | ||
| Rebate (87A / 156) | ₹60,000 up to ₹12 lakh | ||
| Standard deduction on salary | ₹75,000 |
Sources: Income-tax Act, 2025, Sections 58, 62 and 156 (in force 1 April 2026); Finance Act 2025 slabs, left unchanged by Budget 2026; Section 194J TDS rates and the ₹50,000 threshold; Section 234B and 234C interest. Resident individuals under 60. Checked October 2026.
One advance tax date, not four
Salaried people and regular businesses pay advance tax in four instalments. Anyone on 44ADA pays the whole year in one go, on or before 15 March 2027. Anything paid by 31 March still counts as advance tax for the year. Pay at incometax.gov.in, e-Pay Tax, challan 280, type "Advance Tax (100)".
Miss it and two interest charges start: 1% for one month under Section 234C on the shortfall, then 1% a month from 1 April under Section 234B if you paid less than 90% of the final tax. No interest if the balance after TDS is under ₹10,000.
Who can use 44ADA
Professions listed under Section 44AA: software and IT, engineering, architecture, technical consultancy, legal, medical, accountancy, interior decoration, film and TV artists, company secretaries. Most freelance developers, data people and technical consultants fit. Graphic design, content writing, marketing and video editing are a grey area: many CAs file them as technical consultancy under 44ADA, others use 44AD (the business version, 6% or 8% deemed profit) instead. Ask a CA once; the answer does not change year to year.
Questions people ask
Is 44ADA worth it if my real expenses are small?
Almost always. A freelancer with ₹18 lakh of receipts and ₹2 lakh of real expenses would pay tax on ₹16 lakh with books; under 44ADA they pay on ₹9 lakh. The scheme assumes half your receipts are costs whether or not they are.
Do I also need GST?
Registration is compulsory once your receipts in a financial year cross ₹20 lakh (₹10 lakh in the north-eastern and hill states). Work for clients outside India counts as export of services: zero-rated, but you still register and file a Letter of Undertaking (LUT) each year so you can invoice without charging 18%. Below the threshold, no GST at all.
Why did my client pay me 10% less?
Section 194J: companies paying a resident professional more than ₹50,000 in a year must deduct 10% TDS (2% for technical services) and deposit it against your PAN. It is not lost money. It appears in your Form 26AS within a quarter and comes off your tax bill, which is why the calculator asks for it.
What about Upwork, Fiverr and foreign clients?
Foreign clients deduct nothing, so your whole tax is advance tax. Indian platforms and marketplaces deduct a small TDS under Section 194-O and charge GST on their fee; both show up in your AIS. Convert foreign receipts at the rate on the day the money landed in your Indian account; the bank's credit advice (FIRA) is your record.
Do I need to keep books or get an audit?
Not while you declare 50% or more and stay under the ceiling (₹75 lakh, or ₹50 lakh if more than 5% of receipts were cash). Keep invoices and bank statements anyway; they prove the receipts figure if asked.
Which ITR form?
ITR-4 (Sugam) if your total income is up to ₹50 lakh and you have no capital gains or foreign assets. Otherwise ITR-3. Due date 31 July 2027 for FY 2026-27, unless extended.
Can I switch between 44ADA and regular books each year?
Yes. Unlike 44AD for businesses, 44ADA has no five-year lock-in. Declaring less than 50% in a year means books and an audit for that year, nothing more.
New or old regime?
New, unless your old-regime deductions (80C, 80D, NPS, home loan interest, HRA) add up to well over ₹3 lakh. Toggle both above with your own numbers; the difference is usually the whole decision. The new regime is the default on the portal; you opt for the old one on Form 10-IEA.
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Invoices, payments and client TDS in one tab, 43 currencies including INR. Go Lancer tracks time, sends invoices and chases them. Built with 100+ freelancers.