Learn how normal taxation compares against Section 44ADA for freelancers.
Read the Guide →Calculate your taxes specifically using the 50% presumptive scheme.
Open 44ADA Calculator →The KaroTools Tax Calculator Hub helps Indian freelancers find their exact tax liability for FY 2026-27. It automatically applies the New Tax Regime slabs and calculates Section 87A rebates. If you are eligible, it allows you to compute presumptive tax under Section 44ADA. See our Section 44ADA Guide for detailed comparisons.
44ADA Taxable Income = Gross Receipts × 50%
Normal Taxable Income = Gross Receipts - Actual Expenses
Under the Old Tax Regime, you can claim deductions like 80C (up to ₹1.5L for LIC, PPF, ELSS), 80D (Health Insurance), and HRA. The New Tax Regime offers lower tax rates but does not allow most of these deductions. For FY 2026-27, the New Tax Regime is the default, and it provides a full tax rebate for income up to ₹7,00,000 under Section 87A. For most freelancers without significant investments, the new regime is highly beneficial.
Section 44ADA of the Income Tax Act allows specific professionals (like software developers, consultants, and designers) to declare exactly 50% of their gross receipts as profit, without needing to maintain detailed books of accounts or expense proofs. This is a massive compliance relief and often results in lower tax liability. However, it is only applicable if your total gross receipts in the financial year are under ₹75 Lakhs.
If your total estimated tax liability for the year exceeds ₹10,000 after adjusting for TDS, you are required to pay Advance Tax in four installments (June, September, December, and March). Failing to pay advance tax leads to a 1% per month penalty under sections 234B and 234C. Our tax calculator helps you estimate your final liability so you can plan your advance tax payments accordingly.