# Freelancer Tax Calculator India: 44ADA, FY 2026-27 > Freelancer tax calculator India: 44ADA taxes half your receipts. Compare with actual expenses, net off TDS and check if you need GST registration. Source: https://trykosh.com/tools/freelancer-tax-calculator Free tool - Business and GST # Freelancer tax calculator for India (44ADA) Freelancers and consultants can pay tax on half their gross receipts without keeping detailed books. See what that means for you in FY 2026-27, how it compares with your real profit, and what's left after TDS. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax under 44ADA INR 1,66,400 INR 16,400 still to pay after TDS, as advance tax by 15 March 2027 Receipts cross INR 20 lakh, so GST registration is required. Charge 18% GST to Indian clients. Deemed profit (50%)**INR 18,00,000** Tax on actual profit**INR 5,61,600** 44ADA saves**INR 3,95,200** Gross receipts INR 36,00,000 Deemed profit at 50% INR 18,00,000 \+ Other income INR 0 Taxable income (new regime) INR 18,00,000 Tax including cess INR 1,66,400 − TDS already deducted INR 1,50,000 Balance to pay INR 16,400 44ADA versus actual profit 44ADA (50%) Actual books Profit taxed INR 18,00,000 INR 32,00,000 Tax INR 1,66,400 INR 5,61,600 Kept after expenses and tax INR 30,33,600 INR 26,38,400 Your expenses are under half your receipts, so 44ADA taxes less than your real profit and needs no books. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-freelancer-tax-calculator) ## How the freelancer tax calculator (44ADA) works Section 44ADA (folded, with 44AD and 44AE, into section 58 of the Income-tax Act, 2025) lets resident professionals declare 50% of gross receipts as profit. It covers the professions listed for books of account, such as legal, medical, engineering, architecture, accountancy, technical consultancy and interior decoration, plus notified ones like film artists and IT professionals. Many developers and consultants fit here; check that your work falls within a listed profession. The limit is INR 50 lakh of receipts, or INR 75 lakh if no more than 5% comes in cash. Most freelancers are paid by bank transfer, so the INR 75 lakh limit is the one that applies. The deemed profit, plus any other income, is taxed at slab rates; there's no standard deduction because you aren't salaried. The calculator also taxes your actual profit (receipts minus real expenses) for comparison. If your expenses are under half your receipts, 44ADA taxes less than you really earn and saves you the cost of books. If they're more, you can declare the lower real profit, but then you need books and an audit when income is above the basic exemption. Clients in India often deduct 10% TDS under section 194J on professional fees (2% for technical services). That's credited against your tax, so the calculator nets it off to show the balance due as advance tax by 15 March, or the refund you'll get. On GST: registration is needed once receipts cross INR 20 lakh (INR 10 lakh in special-category states). Exports of services are zero-rated: register, file a letter of undertaking, and invoice foreign clients without GST. Taxable income = 50% x gross receipts + other income Limit INR 50 lakh; INR 75 lakh if cash receipts ≤ 5% Balance due tax − TDS, payable as advance tax by 15 March ## Worked example: Aditi, UX designer in Pune with US clients Aditi billed INR 48 lakh in FY 2026-27, all from clients abroad, with about INR 6 lakh of real expenses. Under 44ADA her taxable income is INR 24 lakh and her tax in the new regime is INR 3,12,000. Taxed on her actual INR 42 lakh profit she'd pay INR 8,73,600, so the scheme saves INR 5,61,600. No TDS was cut by foreign clients, so the whole INR 3,12,000 is due as advance tax by 15 March 2027. Her receipts are above INR 20 lakh, so she needs GST registration, but her exports go out GST-free under a LUT. Tax under 44ADA INR 3,12,000 INR 3,12,000 still to pay after TDS, as advance tax by 15 March 2027 Receipts cross INR 20 lakh, so GST registration is required. Exports are zero-rated: file a LUT and invoice without GST. Deemed profit (50%)**INR 24,00,000** Tax on actual profit**INR 8,73,600** 44ADA saves**INR 5,61,600** Gross receipts INR 48,00,000 Deemed profit at 50% INR 24,00,000 \+ Other income INR 0 Taxable income (new regime) INR 24,00,000 Tax including cess INR 3,12,000 − TDS already deducted INR 0 Balance to pay INR 3,12,000 Your expenses are under half your receipts, so 44ADA taxes less than your real profit and needs no books. [Load this example into the calculator ->](?receipts=4800000&expenses=600000&tds=0&export=1#calculator) ## Good to know - Foreign clients don't deduct Indian TDS, so freelancers working for them should budget for advance tax. Under 44ADA it's all due by 15 March. - Export receipts must come in foreign exchange (or permitted rupee routes) for zero-rating. Keep the FIRA or bank advice for each payment. - Under 44ADA you can't also claim expenses or depreciation separately; the 50% is deemed to cover them all. - The TDS threshold under 194J is INR 50,000 a year per client from FY 2025-26, so small one-off clients usually pay you in full. ## Frequently asked questions How much tax does a freelancer pay in India? Under 44ADA, tax is charged on half your gross receipts at slab rates. In the new regime, receipts of up to INR 24 lakh mean deemed income of INR 12 lakh or less, which is tax-free after the 87A rebate if you have no other income. Above that, tax rises with the slabs. Can a freelancer claim expenses and also use 44ADA? No. Under 44ADA, 50% of receipts is deemed to be profit after all expenses. If your actual expenses are more than half your receipts, you can declare your real profit instead, but you'll need books and possibly an audit. Do freelancers need GST registration? Yes, once aggregate turnover crosses INR 20 lakh in a year (INR 10 lakh in special-category states). Exports count towards that turnover. Exports of services are zero-rated, so you charge no GST to foreign clients if you file a letter of undertaking. Is TDS deducted on freelance payments? Indian businesses deduct 10% TDS under section 194J on professional fees above INR 50,000 a year, or 2% on fees for technical services. Individuals paying for personal work don't deduct TDS. You claim the TDS as a credit when you file. Which ITR form do freelancers file? ITR-4 (Sugam) if you use 44ADA and your income is up to INR 50 lakh without complications such as capital gains above the small exemption. Otherwise ITR-3. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [CBIC GST portal](https://cbic-gst.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.