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For Freelancers & Consultants

Your Freelance Income,
Tax-Smart & Compliant

Section 44ADA presumptive taxation, advance tax planning, GST registration, professional contracts — handled by CAs who speak freelancer.

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Section 44ADA Specialists
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Section 44ADA Decoded

Presumptive Taxation — The Freelancer's Best Friend

Section 44ADA lets eligible professionals (IT, design, law, medicine, architecture, etc.) declare 50% of gross receipts as profit — no books required, simpler ITR, lower compliance burden.

Opt In (44ADA)
Presumptive Scheme
Declare 50% of gross receipts as net profit. No need to maintain books of accounts. No audit required (if receipts below ₹75 lakh). File simple ITR-4. Ideal for most freelancers earning up to ₹75 lakh/year.
Max receipt: ₹75 lakh · Tax on 50% of income
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Opt Out (Regular)
Regular Books Method
Maintain proper books of accounts and claim actual deductions — rent, internet, equipment, travel, depreciation. If actual expenses > 50%, this may give lower taxable income. Requires audit if receipts exceed ₹50 lakh. File ITR-3.
Better if expenses > 50% of income
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Advance Tax
Pay in 4 Instalments
Unlike salaried employees, freelancers must pay advance tax. Due dates: 15% by Jun 15, 45% by Sep 15, 75% by Dec 15, 100% by Mar 15. Missing instalments attracts interest u/s 234B & 234C at 1% per month.
Avoid 234B/C interest with timely payments
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TDS on Payments
Claim Your TDS Refunds
Indian companies deduct TDS at 10% on professional fees (Section 194J) before paying you. This credit appears in Form 26AS & AIS. We ensure all TDS is claimed in your ITR and excess amounts are refunded.
Section 194J TDS reflected in Form 26AS
Advance Tax Calendar

Never Miss a Payment Deadline

Q1
Jun 15
1st Instalment
Pay 15% of estimated annual tax liability. Compute based on expected annual income.
Q2
Sep 15
2nd Instalment
Cumulative 45% paid by this date. Revise estimate if income changed significantly.
Q3
Dec 15
3rd Instalment
Cumulative 75% of tax paid. Last chance to revise estimates based on actual YTD income.
Q4
Mar 15
Final Instalment
100% of advance tax paid. Balance after TDS credit from Form 26AS.
ITR
Jul 31
File ITR-4 / ITR-3
File your income tax return. Claim all TDS credits and deductions. Get refund if overpaid.
Common Questions

Freelancer Tax — FAQs

If you opt for Section 44ADA (presumptive taxation) and gross receipts are below ₹75 lakh, file ITR-4 (Sugam). This is the simplest option. If your receipts exceed ₹75 lakh, you opt out of 44ADA, or you have capital gains / multiple business heads, file ITR-3. TaxClue will assess your situation and file the correct form.
GST registration is mandatory if your annual service turnover exceeds ₹20 lakh (₹10 lakh in some states). However, you must register regardless of turnover if you provide export services (OIDAR category) or serve GST-registered businesses who want to claim input tax credit. Voluntarily registering also lets you claim GST ITC on your own purchases (laptop, software subscriptions, etc.).
Under Section 44ADA (presumptive), no separate deductions are allowed — the 50% deemed profit already accounts for all expenses. Under regular accounts (ITR-3), you can claim actual expenses: home office rent proportion, laptop/equipment depreciation (15–40%), internet bills, professional subscriptions, travel, and professional development courses — all must be documented with invoices.
When a company pays a freelancer/consultant professional fees exceeding ₹30,000 in a year, it must deduct TDS at 10% under Section 194J before payment. This deducted amount is deposited with the government and reflects in your Form 26AS and AIS. When you file your ITR, this TDS is credited against your tax liability — if excess was deducted, you get a refund. Always verify your Form 26AS matches your actual income.
If your total tax liability exceeds ₹10,000 after TDS credit and you don't pay advance tax, you'll be charged interest under Section 234B (1% per month for unpaid advance tax) and 234C (1% per month for each delayed instalment). These charges are applied when you file your ITR and can significantly increase your total tax outgo. TaxClue helps you calculate and pay the correct advance tax on time.
Get Your Free
Freelancer Tax Review
Our CA will review your freelance income, advise on 44ADA vs regular books, compute your advance tax, and tell you exactly what you owe — free, no obligation.
Our freelancer-specialist CA will call you within 2 hours. Thank you!

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