Freelancer Tax Estimator
Enter your freelance receipts to see whether 44ADA presumptive taxation or regular books save you more tax.
Runs entirely in your browser — your numbers never leave this page.
How it works
Freelancers in specified professions can skip bookkeeping with 44ADA:
- 44ADA: 50% of gross receipts is deemed profit — no books, no audit (up to Rs 50L; Rs 75L if 95%+ via banking channels).
- Regular: claim actual expenses with books; pays off when expenses exceed 50% of receipts.
- The 50% test: expenses below half your receipts → 44ADA almost always wins. Above → keep books.
- The lock-in: opt out of 44ADA and you can't return for 5 years, plus mandatory audit — don't flip-flop.
- Advance tax: 44ADA taxpayers pay advance tax in one instalment by March 15 — miss it and interest u/s 234B/C applies.
- GST: separate question — 44ADA doesn't exempt you from GST registration above the threshold.
Frequently asked questions
What is 44ADA?
Presumptive taxation for specified professionals: 50% of gross receipts is deemed income, no books or audit needed, up to Rs 50L (Rs 75L if 95%+ receipts via banking).
Who can use 44ADA?
Specified professionals — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, and similar notified professions.
When does 44ADA lose?
When your actual expenses exceed 50% of receipts — then regular books with actual expense claims pay less tax.
Can I switch every year?
No — opting out of 44ADA bars you from it for 5 years and triggers mandatory audit. Choose carefully.
Do I still pay advance tax under 44ADA?
Yes — in a single instalment by March 15. Missing it attracts interest under sections 234B and 234C.
Does 44ADA cover GST?
No — GST registration thresholds apply separately regardless of your income-tax scheme.
What records do I keep under 44ADA?
Minimal — but keep receipts/invoices anyway; the assessing officer can still ask for them.
Is the 50% limit on receipts or profit?
Receipts — 50% of your gross professional receipts is deemed taxable profit, regardless of actual expenses.
What if receipts exceed Rs 50 lakh?
44ADA is unavailable (unless the Rs 75L banking-channel condition is met) — regular books and possible audit apply.
New vs old regime for freelancers?
Run both — this calculator does. The new regime's lower slabs often win, but old-regime deductions can flip it for some.