Freelancer 44ADA Tax Calculator

⚡ In shortSection 44ADA lets eligible professionals — doctors, lawyers, architects, engineers, accountants, technical consultants and other notified professions — declare just 50% of their gross receipts as taxable income, with no requirement to maintain books of account or get audited. You are eligible for 44ADA if your gross professional receipts are within ₹50,00,000 in the year, or within ₹75,00,000 when at least 95% of your receipts are digital (bank, UPI or cheque). Your presumptive income is fixed at 50% of gross receipts — you may declare more if your actual profit is higher, but not less. Tax is then charged on that presumptive income at the normal slab rates; this calculator uses the new-regime slabs for AY 2026-27, where income up to ₹12 lakh is effectively tax-free through the §87A rebate. Note that GST registration is a separate question: a service provider generally needs to register once turnover crosses ₹20 lakh (₹10 lakh in special-category states), regardless of 44ADA.

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How it is calculated

You are eligible for 44ADA if your gross professional receipts are within ₹50,00,000 in the year, or within ₹75,00,000 when at least 95% of your receipts are digital (bank, UPI or cheque). Your presumptive income is fixed at 50% of gross receipts — you may declare more if your actual profit is higher, but not less. Tax is then charged on that presumptive income at the normal slab rates; this calculator uses the new-regime slabs for AY 2026-27, where income up to ₹12 lakh is effectively tax-free through the §87A rebate. Note that GST registration is a separate question: a service provider generally needs to register once turnover crosses ₹20 lakh (₹10 lakh in special-category states), regardless of 44ADA.

Frequently asked questions

Who can use section 44ADA?

Resident individuals and partnership firms (not LLPs) carrying on a notified profession — legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, and others notified by the CBDT — with gross receipts within the limit.

Do I still pay advance tax under 44ADA?

Yes, but in a single installment — a 44ADA taxpayer pays 100% of the advance tax by 15 March. If tax due after TDS is ₹10,000 or more, advance tax applies.

Can I claim expenses on top of the 50%?

No. The 50% presumptive income is deemed to be after all expenses and depreciation. If your real expenses are higher and your actual profit is below 50%, you can declare the lower figure but then you must maintain books and get a tax audit.

Does 44ADA cover GST?

No — they are separate. 44ADA is only about income tax. GST registration depends on your turnover crossing the threshold and the nature of your supplies.

Related reading

India Law Simplified is an AI-assisted tool, not a substitute for a licensed CA or advocate. Tax rules and limits change with each Finance Act — verify before relying on any figure.