Presumptive tax for Indian freelancers. The Freelancer Income Tax Calculator (44ADA) takes gross professional receipts for the year, presumptive profit rate (section 44ada), tax regime, deductions under 80c, 80d etc. (old regime only) and returns income tax for the year plus presumptive income, taxable income, tax as a share of receipts. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
For freelancers and agencies the scarce resource is billable time. Pricing has to cover unpaid hours, tools, taxes and time off, not just the hours a client sees on an invoice. Use the worked example below to check the maths against your own figures.
How the Freelancer Income Tax Calculator (44ADA) works
Under section 44ADA a freelancer or professional with receipts up to ₹75 lakh (with 95% digital receipts; otherwise ₹50 lakh) can declare 50% of receipts as income without keeping books. The tax is then computed on that figure under the regime you choose.
Worked example
With the example values (gross professional receipts for the year of ₹2,000,000, presumptive profit rate (section 44ada) of 50%, tax regime "New regime", deductions under 80c, 80d etc. (old regime only) of ₹150,000), the income tax for the year is ₹0.00; presumptive income ₹1,000,000.00, taxable income ₹1,000,000.00, tax as a share of receipts 0%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Rebate under section 87A, surcharge and 4% cess are applied; the standard deduction does not apply to professional income. No advance-tax or GST calculation is included.
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Frequently Asked Questions
How is income tax for the year calculated?
presumptive income = receipts × 50% (section 44ADA); tax = slab tax on presumptive income (less deductions in the old regime) + 4% cess.
Which figures do I need?
Gross professional receipts for the year, presumptive profit rate (section 44ada), tax regime, deductions under 80c, 80d etc. (old regime only). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How do I choose the target income or margin?
Start from what you need to earn after tax and expenses, add a margin for unpaid time (sales, admin, holidays, slow months) and check the resulting rate against what your market pays.
What assumptions does this calculator make?
Rebate under section 87A, surcharge and 4% cess are applied; the standard deduction does not apply to professional income. No advance-tax or GST calculation is included.
