Freelance Tax Estimator

Estimate tax for freelancers under Section 44ADA Presumptive Taxation or standard tax options.

Gross Freelance Receipts / Income (₹)₹20,00,000

Deductions (80C, 80D for Old Regime) (₹)₹1,00,000

Tax Strategy Recommendation

New Regime is highly recommended!

Presumptive Taxable Income (50% under Sec 44ADA): ₹10,00,000.

New Regime Tax₹52,000

Old Regime Tax₹96,200

How This is Calculated (Formula Transparency)

Under Section 44ADA, professionals with gross receipts up to ₹50 Lakhs (or ₹75 Lakhs for digital transactions) can declare 50% of gross receipts as taxable income. Deductions and tax are calculated on this net amount.

Concept: Presumptive Income = 50% of ₹30L = ₹15,00,000. New Regime taxable: ₹15L (no standard deduction). Old Regime taxable: ₹15L - ₹1.5L (80C) = ₹13.5L. Computes tax accordingly.

Worked Example Case Study

Scenario: Freelance developer with gross annual receipts of ₹30,00,000 and ₹1,00,000 standard 80C investments.

Detailed Calculation: Presumptive Income = 50% of ₹30L = ₹15,00,000. New Regime taxable: ₹15L (no standard deduction). Old Regime taxable: ₹15L - ₹1.5L (80C) = ₹13.5L. Computes tax accordingly.

Result Outcome: Taxable Income: ₹15,00,000. New Regime Tax: ₹1,50,000 + 4% cess = ₹1,56,000.

Assumptions & Rules

Section 44ADA applies to specified professions (IT, Medical, CA, Engineering, etc.).
Gross digital receipts are over 95% of total receipts for the ₹75L limit.
Calculations are compliant with laws and rates as of FY 2025-26 (AY 2026-27).

Talk to a Tax Expert / CA Secure

Get customized answers for your HRA, Section 80C, or income tax filings in India.