How to use the freelancer tax calculator
- Choose the tax regime you plan to file under.
- Enter your gross receipts for the year and the share received in cash.
- Leave the profit declared at 50%, or raise it if you declare more.
- Add other income, your age and, for the old regime, your deductions.
- Optionally enter your actual expenses to compare with regular books, then read the tax, rate and monthly set-aside.
How presumptive taxation works
Taxable income = 50% of gross receipts + other income − deductions (old regime)
Instead of adding up expenses, you declare at least 50% of your fees as income. The other half is treated as covering all expenses, including depreciation, and you do not need detailed books. There is no standard deduction, because the income is not salary.
Example: on ₹30,00,000 of receipts, taxable income is ₹15,00,000 and the tax is ₹1,09,200 in the new regime (₹2,73,000 in the old with no deductions). That is about ₹9,100 to set aside each month. If your real expenses were ₹9,00,000, profit from books would be ₹21,00,000, taxed at ₹2,34,000.
Tax by gross receipts
At 50% of receipts, no other income, below age 60, no old-regime deductions, cash receipts under 5%. Tax includes 4% cess.
| Gross receipts | Taxable income | New regime | Old regime | New regime, % of receipts |
|---|---|---|---|---|
| ₹10 L | ₹5,00,000 | ₹0 | ₹0 | 0% |
| ₹20 L | ₹10,00,000 | ₹0 | ₹1,17,000 | 0% |
| ₹30 L | ₹15,00,000 | ₹1,09,200 | ₹2,73,000 | 3.6% |
| ₹50 L | ₹25,00,000 | ₹3,43,200 | ₹5,85,000 | 6.9% |
| ₹75 L | ₹37,50,000 | ₹7,33,200 | ₹9,75,000 | 9.8% |
Receipts of ₹75 lakh qualify only when cash is 5% of receipts or less; otherwise the limit is ₹50 lakh.
Who can use it
| Rule | Section 58 for professionals |
|---|---|
| Who | Resident individuals and partnership firms other than LLPs |
| Professions | Legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and notified professions |
| Receipts limit | ₹50 lakh, or ₹75 lakh if cash is 5% of receipts or less |
| Income declared | At least 50% of gross receipts |
| Advance tax | One instalment by 15 March 2027 |
| Books and audit | Not needed while you declare at least 50% within the limit |
From 44ADA to Section 58
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. Section 58 brings the old presumptive schemes for small businesses (44AD), professionals (44ADA) and goods carriages (44AE) into one section with a table, professionals being one of its entries. For professionals the rules carry over: 50% of receipts, the ₹50 lakh and ₹75 lakh limits, and advance tax in one instalment.
Plan the payment on the advance tax calculator, or compare with a salaried income on the income tax calculator.
Frequently asked questions
How is tax calculated for freelancers under Section 58 (44ADA)?
50% of your gross receipts is taken as income, and tax is worked out at slab rates on it with any other income. On ₹30,00,000 of receipts that is ₹15,00,000 of income and ₹1,09,200 of tax in the new regime for tax year 2026-27, including cess.
What is the limit for presumptive taxation for professionals?
Gross receipts of up to ₹50 lakh, raised to ₹75 lakh when cash receipts are no more than 5% of the total. Above the limit, income is worked out from regular books and a tax audit applies.
Who can use the presumptive scheme for professionals?
Resident individuals and partnership firms other than LLPs who practise a specified profession: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, and notified professions such as company secretaries, film artists, authorised representatives and information technology. Many software and design freelancers fall under technical consultancy or IT; check how your work is classified.
Is there a standard deduction for freelancers?
No. The standard deduction applies only to salary and pension. Professional income under the presumptive scheme is taxed on the declared share of receipts, and the rest is treated as covering all expenses.
How much tax does a freelancer pay on ₹24 lakh in the new regime?
Nothing, if there is no other income: 50% of ₹24 lakh is ₹12,00,000, within the new regime's ₹12 lakh rebate limit, so the tax is ₹0.
When do freelancers pay advance tax under the presumptive scheme?
If the year's tax after TDS is ₹10,000 or more, the whole amount can be paid in one instalment by 15 March 2027, instead of the four instalments others pay.
Can I declare less than 50% of receipts as profit?
Only by leaving the scheme. You then keep regular books of account, and if your income is above the tax-free limit, get them audited. You can always declare more than 50%.