Freelancer & consultant tax calculator (44ADA vs actual)
Compare presumptive taxation under 44ADA against your real books.
Rent, software, travel, subcontractors, depreciation
44ADA saves you tax
Your receipts are within the 44ADA limit (₹75 lakh where 95%+ of receipts are digital, otherwise ₹50 lakh).
Also on your checklist
- • GST registration once turnover crosses ₹20 lakh (₹10 lakh in special category states).
- • Advance tax — one instalment by 15 March if you are on 44ADA, otherwise four instalments.
- • Clients will deduct 10% TDS under 194J; reconcile it against Form 26AS before filing.
- • Exporting services? File an LUT to invoice without IGST and keep FIRC records.
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Section 44ADA in one paragraph
If you are a specified professional — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration or an IT professional — with gross receipts up to ₹50 lakh (₹75 lakh where at least 95% of receipts are digital), you can declare 50% of receipts as profit and pay tax only on that.
You do not need to maintain detailed books or get an audit, and you cannot separately claim expenses or depreciation. If your real expenses are below half your receipts, 44ADA is almost always the cheaper route.
The things freelancers forget
GST registration becomes mandatory once turnover crosses ₹20 lakh (₹10 lakh in special category states), and immediately for exports of services if you want to claim a refund or file under LUT. Foreign clients paying in USD also need FIRC documentation.
Advance tax applies to you in four instalments unless you are on 44ADA, in which case one payment by 15 March is enough. And your clients will deduct 10% TDS under 194J — that is a credit, not a cost, but only if your PAN details on the invoice are correct.
Frequently asked questions
Should a freelancer choose 44ADA or regular books?
If actual expenses are less than 50% of receipts, 44ADA usually saves tax and audit cost. If you have heavy equipment, staff or office costs, regular books can be better — the calculator shows both.
Do freelancers need to register for GST?
Yes, once aggregate turnover crosses ₹20 lakh (₹10 lakh in special category states). Exporters of services often register voluntarily to file under LUT and claim input refunds.
Which ITR form do freelancers file?
ITR-4 if you opt for 44ADA presumptive taxation, or ITR-3 if you maintain regular books of account.