Freelance tax estimator for India
Enter your annual income. See your estimated tax under Section 44ADA, your advance tax instalments, and how much to set aside each month.
Frequently asked questions
How is freelance tax calculated under Section 44ADA?
Under Section 44ADA, 50% of your gross professional receipts is treated as taxable profit, regardless of your actual expenses. That 50% figure is then taxed at the applicable slab rate under whichever regime you choose, with no separate expense deduction needed since the presumption already accounts for it.
Is this tax estimator based on the new or old tax regime?
This estimator uses the new tax regime slabs, which is the default regime from FY 2024-25 onward unless you specifically opt for the old regime. The new regime has lower rates but fewer deductions, and works out better for most freelancers who do not have large 80C or 80D investments to claim.
Do freelancers have to pay advance tax in India?
Yes, if your total tax liability for the year exceeds ₹10,000. It is paid in four instalments: 15% by June 15, 45% cumulative by September 15, 75% cumulative by December 15, and 100% by March 15. Missing an instalment adds interest under Sections 234B and 234C, calculated when you file.
Is income up to ₹12 lakh really tax-free for freelancers?
The Section 87A rebate under the new regime brings tax to zero when your taxable income (after the 44ADA presumption, not your gross receipts) is ₹12,00,000 or below. For a freelancer under 44ADA, that means roughly ₹24 lakh in gross receipts can still result in zero tax, since only half of that is treated as taxable income.
How much should a freelancer set aside for taxes every month in India?
Divide your estimated annual tax by 12 and move that amount into a separate account the same day any payment arrives. Many freelancers use a flat 25 to 30% of gross receipts as a safer working default until they know their exact effective rate, since it is easier to have extra buffer than to come up short at an advance tax deadline.