Freelancer Tax Calculator (Section 44ADA)

Inputs

100K7.5M
04M
0150K

Result

Total income tax
₹0
  • Gross receipts₹1,500,000
  • Presumptive income (50% of gross)₹750,000
  • Taxable income₹750,000
  • Tax (new regime + 4% cess)₹0
  • Effective tax rate0.00% of gross receipts
  • ⚠️ 44ADA hides real incomeYour actual profit is higher than 50% presumptive. 44ADA saves you tax on this hidden income — perfectly legal.₹550,000

How to use this calculator

  • Enter your annual gross receipts (invoiced income).
  • Enter actual business expenses (for reference — calculator uses 50% presumption).
  • Choose tax regime.
  • For old regime, enter 80C investments.
  • Read total tax + effective rate.

About this tool

Section 44ADA lets Indian professionals (freelancers, consultants, lawyers, doctors, engineers, architects, accountants) skip books of accounts — just declare 50% of gross receipts as deemed profit and pay tax on that. Available for gross receipts up to ₹75 lakh/year (₹50L if cash receipts exceed 5%). Massive simplification: no bookkeeping, no auditor, no depreciation calculations, no expense documentation. Best for professionals whose actual expenses are LESS than 50% of gross — that gap becomes tax-free "invisible income". If your real expenses exceed 50%, regular ITR (Section 44AA) is better.

Frequently asked

Resident individual or partnership firm engaged in specified professions: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, information technology, film artist, company secretary, and other CBDT-notified professions. Gross receipts cap: ₹75 lakh (₹50L if cash receipts >5%).

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