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Free Section 44ADA Tax Calculator for Freelancers

Enter your year’s receipts. See your presumptive profit, tax under the new or old regime, and what you still owe after TDS.

  • 100% free
  • No signup
  • Runs in your browser. Nothing is uploaded
₹

Everything clients paid you for professional work, before TDS.

₹

Bank, UPI, card and cheque don’t count.

%

At least 50% of receipts.

Tax regime

₹

From Form 26AS or your AIS.

Estimated income tax for the year

₹1,09,200

3.64% of your receipts

Profit declared (50%)
₹15,00,000
Tax on slabs
₹1,05,000
Health & education cess (4%)
₹4,200
Balance to pay
₹1,09,200

Pay the ₹1,09,200 as advance tax by 15 March. Under 44ADA it’s one instalment. Pay late and you’ll owe interest.

44ADA needs a clean record of what you received. TracEasy keeps every invoice and payment in one place, so you always know what you’ve billed and been paid this year.

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How 44ADA works

Under presumptive taxation, a professional doesn’t work out actual profit. You declare 50% of gross receipts as income (or more, if your real profit is higher) and pay tax on that at normal slab rates. You don’t need detailed books or a tax audit, and you pay advance tax in one go by 15 March.

From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act and uses “tax year” instead of “previous year”. The presumptive scheme for professionals carries over with the same 50% and ₹50 lakh / ₹75 lakh rules. Most people still call it 44ADA, so we do too.

New regime slabs used here

IncomeRate
Up to ₹4 lakhNil
₹4–8 lakh5%
₹8–12 lakh10%
₹12–16 lakh15%
₹16–20 lakh20%
₹20–24 lakh25%
Above ₹24 lakh30%

A rebate makes tax nil up to ₹12 lakh of income, with marginal relief just above it. Add 4% health and education cess. The ₹75,000 standard deduction is for salary only, so it doesn’t apply to freelance income.

Worked example

Arjun is a freelance developer. In the year he receives ₹30 lakh, all by bank transfer, and his clients deduct ₹3 lakh TDS.

  • Presumptive profit: 50% × ₹30 lakh = ₹15 lakh
  • Tax on slabs (new regime): ₹20,000 + ₹40,000 + ₹45,000 = ₹1,05,000
  • No rebate (income is over ₹12 lakh). Cess 4% = ₹4,200, so total tax = ₹1,09,200
  • TDS of ₹3,00,000 is more than the tax, so Arjun gets a refund of ₹1,90,800 when he files ITR-4

Common mistakes

  • Treating TDS as final. Clients often deduct 10% TDS, which is more than the tax actually due. File your return to get the difference back.
  • Leaving out foreign receipts. Payments from abroad are part of gross receipts. Count them in rupees at the rate you received them.
  • Missing the 15 March deadline. Under 44ADA the whole advance tax is due in one instalment, and interest starts if you’re late.
  • Mixing up GST and income tax limits. 44ADA’s ₹50 / ₹75 lakh is for income tax. GST registration has its own ₹20 lakh limit. Check it with the GST registration checker.

Billing clients? Make invoices and payment receipts with the free invoice generator and receipt generator.

Frequently asked questions

Who can use Section 44ADA?

Resident individuals, HUFs and partnership firms (not LLPs) in a specified profession: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, film artists, company secretaries and information technology. Software developers, designers doing technical work and IT consultants usually qualify.

What is the turnover limit for 44ADA?

₹50 lakh of gross receipts in the year, or ₹75 lakh if cash receipts are no more than 5% of the total. Payments by bank transfer, UPI, card or account-payee cheque aren’t cash.

Can I declare less than 50% profit?

Only by leaving 44ADA. Then you must keep full books of account and, if your income is above the basic exemption limit, get a tax audit. You can always declare more than 50%.

Can I claim expenses like laptop, rent or internet under 44ADA?

No. The 50% already treats half your receipts as expenses, so you can’t deduct actual costs on top. That’s the trade-off for not keeping detailed books.

When do I pay advance tax under 44ADA?

In one instalment, by 15 March of the financial year. That applies if the tax left after TDS is ₹10,000 or more. Pay late and interest is charged under the advance-tax rules.

My clients deduct 10% TDS. Is that my final tax?

No. TDS is only an advance payment. Your actual tax depends on your total income and slab. Many freelancers under ₹24 lakh of receipts owe nil tax under the new regime and can get the TDS back as a refund by filing their return.

Which ITR form do I use?

ITR-4 (Sugam) for resident individuals with income up to ₹50 lakh who use presumptive taxation. Otherwise ITR-3.

Related free tools

Free GST Registration Checker

Do you need a GSTIN yet? Checks your turnover against the ₹20 lakh / ₹10 lakh limit.

Free GST Invoice Generator

GST tax invoice with per-item GST, CGST/SGST or IGST, UPI QR. PDF, print or email.

Free Payment Receipt

Cash, UPI, cheque or bank transfer receipt with amount in words.

Last reviewed 24 September 2026 by the TracEasy team. For information only. Check tax positions for your business with your accountant.