Calculate income tax and GST for Indian freelancers and self-employed professionals. Compare old vs new regime. Includes Section 44ADA presumptive taxation.
Yes. Freelancers in India are classified as self-employed and must pay income tax on their income under 'Profits and Gains from Business or Profession'. If gross receipts exceed the basic exemption limit, income tax applies. They file ITR-4 (presumptive under 44ADA) or ITR-3 (regular business income).
Section 44ADA allows eligible professionals (doctors, lawyers, CAs, engineers, architects, IT consultants, freelancers) with gross receipts up to ₹75 lakh to pay tax on only 50% of gross receipts. No need to maintain detailed books of accounts. The remaining 50% is assumed to be expenses.
GST registration is mandatory if your annual turnover exceeds ₹20 lakh (₹10 lakh for special category states). For overseas clients (exports), GST is zero-rated. If providing services to Indian clients above the threshold, you must register, charge 18% GST, and file monthly/quarterly returns.
Under Regular taxation: Yes, you can deduct actual business expenses. Under Section 44ADA: No additional business expenses can be claimed since the 50% deduction is already inclusive. You can still claim Chapter VI-A deductions (80C, 80D etc.) under 44ADA.
Freelancers file ITR-4 (presumptive under 44ADA) or ITR-3 (regular business income). Deadline is July 31 (without audit). Advance tax must be paid if tax liability exceeds ₹10,000. Quarterly advance tax dates: June 15, September 15, December 15, March 15.