For freelancers, consultants and creators paid by Indian or foreign clients, including Upwork, Mercor, Toptal and YouTube. Enter your receipts to estimate tax under both regimes, the advance tax due by 15 March, and the return form to file.
Educational estimate for resident individuals. Not affiliated with the Income Tax Department.
Presumptive taxation lets small professionals and businesses pay tax on a fixed share of their receipts instead of keeping detailed accounts of every expense. A freelancer under 44ADA treats 50% of gross receipts as profit. A small business or creator under 44AD treats 6% of digital receipts as profit. No expense proofs are needed, but you cannot claim expenses on top of the deemed profit.
| Rule | Professional scheme | Business scheme |
|---|---|---|
| Who it is for | Professions specified in Section 44AA(1), now Section 62(4), and professions notified by CBDT | Eligible businesses, excluding commission, brokerage and agency businesses and the specified professions |
| Section (FY 2025-26) | 44ADA | 44AD |
| Section (Tax Year 2026-27) | 58(2), Table S. No. 3 | 58(2), Table S. No. 1 |
| Deemed profit | 50% of gross receipts | 6% of digital receipts, 8% of cash receipts |
| Receipt limit | ₹75 lakh if cash ≤ 5%, else ₹50 lakh | ₹3 crore if cash ≤ 5%, else ₹2 crore |
| Advance tax | 100% by 15 March | 100% by 15 March |
| Declaring less than the deemed profit | Books and tax audit if income exceeds the basic exemption | Books and tax audit if income exceeds the basic exemption |
| Gross receipts from foreign clients | ₹30,00,000 |
| Deemed profit at 50% | ₹15,00,000 |
| Tax on slabs: 5% of ₹4–8 L + 10% of ₹8–12 L + 15% of ₹12–15 L | ₹1,05,000 |
| 87A rebate (income is above ₹12 lakh) | ₹0 |
| Health & education cess at 4% | ₹4,200 |
| Total tax, due as advance tax by 15 March | ₹1,09,200 |
The same ₹30 lakh under the business scheme at 6% gives a profit of ₹1,80,000, which is below the taxable limit. Because the gap is large, have a local Chartered Accountant confirm which scheme applies to you.
This page estimates your tax. It does not decide which scheme applies to your work or file anything for you. Before filing, take these numbers to a local Chartered Accountant. Most can confirm your scheme, regime and return form for a small fee.
Yes. A resident of India pays tax on income from all sources, including payments from foreign clients and platforms. Foreign clients usually do not deduct Indian TDS, so the whole tax normally has to be paid by you as advance tax by 15 March.
Yes. Salary is taxed under the head Salaries with its own standard deduction, and freelance receipts are taxed separately on the presumptive basis. Both are added together for slab rates. The calculator lets you enter both.
It depends on the facts of your work and contracts, so this calculator does not decide it for you. Choose a scheme to see an estimate, and the results also show the tax under the other scheme. A local Chartered Accountant can confirm the right scheme, usually for a small fee, before you file.
No. It gives a quick estimate so you know roughly what to set aside and when to pay. Take the numbers to a local Chartered Accountant to confirm your scheme, regime and return form before filing.
No. Under the presumptive scheme, all expenses including depreciation are treated as already allowed. You report gross receipts before platform fees, and 50% (or 6%/8% for business) becomes taxable profit. Chapter VI-A deductions such as 80C and 80D are still available in the old regime.
If you use 44ADA or 44AD, the whole advance tax is due in one instalment by 15 March. It applies only when tax after TDS is ₹10,000 or more. Paying late adds 1% a month interest under Section 234C for the March shortfall and under Section 234B until you pay.
ITR-4 (Sugam) is for ordinarily resident taxpayers using the presumptive scheme with total income up to ₹50 lakh. Use ITR-3 if you are resident but not ordinarily resident (RNOR), are a company director, held unlisted equity shares, cross that limit, keep regular books, claim credit for tax withheld abroad through Form 67, hold accounts or assets outside India, or have capital gains beyond what ITR-4 allows.
From Tax Year 2026-27, 44ADA and 44AD move into Section 58(2) of the Income-tax Act, 2025, as Table S. No. 3 and S. No. 1. The 50%, 6% and 8% rates and the ₹50 lakh / ₹75 lakh and ₹2 crore / ₹3 crore limits are unchanged, and Budget 2026-27 kept the tax slabs the same.
This calculator is for informational and educational purposes only. Results are estimates based on the assumptions you provide and may not reflect actual returns. Past performance does not guarantee future results. Please consult a SEBI-registered financial advisor before making investment decisions.
This tool does not cover capital gains, foreign tax credit, losses or non-resident status. It does not decide whether your work falls under the professional or the business scheme. Please consult a local Chartered Accountant before filing your return.