Freelancer Tax Calculator (Section 44ADA)
For specified professionals (consultants, doctors, lawyers, engineers, tech freelancers, etc.) — declare 50% of gross receipts as income, skip detailed bookkeeping and audit.
If 95%+ of your receipts come through banking/digital channels (cash ≤ 5%), your eligibility limit rises to ₹75 lakh instead of ₹50 lakh.
Presumptive income (50% of receipts)
₹15,00,000
Tax at different receipt levels
| Gross receipts | Tax payable |
|---|---|
| ₹10L | ₹0 |
| ₹20L | ₹0 |
| ₹30L | ₹97,500 |
| ₹40L | ₹1,92,400 |
| ₹50L | ₹3,19,800 |
| ₹75L | ₹7,09,800 |
Why 44ADA is worth understanding before you incorporate anything
Section 44ADA lets specified professionals skip the entire expense-tracking exercise most freelancers dread — instead of proving every deduction, you simply declare 50% of receipts as income:
This is genuinely advantageous if your real expenses are below 50% of receipts — which is common for consulting, tech, and knowledge work with low overhead. If your actual costs run higher than 50% (e.g. a doctor with expensive equipment and staff), the regular books-of-account route might leave you paying tax on a smaller, more accurate profit figure instead.
The eligibility limits are based on gross receipts, not profit — cross ₹50 lakh (or ₹75 lakh if your cash receipts stay at or below 5%) and you lose access to the scheme entirely for that year, not just on the excess.
Frequently asked questions
Specified professionals under Section 44AA — legal, medical, engineering, architectural, accountancy, technical consultancy, interior design, and similar fields, including many forms of tech and creative freelancing. If you're unsure whether your specific work qualifies, check the exact list or ask a CA before relying on this scheme.