Priyanka Personal Finance
Smart Money · Simple Words · India
Smart Money · Simple Words · India
Freelancer, consultant or creator? Estimate your tax under presumptive schemes (44ADA / 44AD), see your advance-tax due dates and amounts, whether you need GST, and which ITR form to file.
| Due by | Cumulative | Pay by then |
|---|
Estimate only · Not tax advice · Presumptive rules & slabs for FY 2025-26 (AY 2026-27), simplified · 44ADA up to ₹75L / 44AD up to ₹3Cr receipts (≤5% cash) · Consult a CA
If you're a freelancer or small-business owner, you don't always need to maintain detailed accounts. Under Section 44ADA, eligible professionals (consultants, designers, writers, doctors, lawyers, etc.) can declare just 50% of gross receipts as income — up to ₹75 lakh receipts (if cash is 5% or less). Under Section 44AD, small businesses declare 8% of turnover as income, or just 6% for digital receipts — up to ₹3 crore turnover. You pay tax only on the presumptive income, which usually means a much lower tax bill and far less paperwork.
If your total tax for the year exceeds ₹10,000, you must pay advance tax during the year, not just at filing. The instalments are due by 15 June (15%), 15 September (45%), 15 December (75%) and 15 March (100%). A helpful relief: taxpayers under 44AD/44ADA can pay the entire advance tax in one shot by 15 March. Missing advance tax attracts interest under Sections 234B and 234C.
Section 44ADA is presumptive taxation for professionals (like consultants, designers, writers, doctors, lawyers). You can declare 50% of your gross receipts as income and pay tax on that, without maintaining detailed books, for receipts up to ₹75 lakh (if cash receipts are 5% or less).
44ADA is for specified professionals and presumes 50% of receipts as income. 44AD is for small businesses and presumes 8% of turnover as income, or 6% for digital receipts, for turnover up to ₹3 crore (if cash is 5% or less).
If your total tax for the year is more than ₹10,000, advance tax is due in four instalments — by 15 June, 15 September, 15 December and 15 March. Taxpayers under 44AD/44ADA can pay 100% in a single instalment by 15 March.
GST registration is generally required once your annual turnover crosses ₹20 lakh for services (₹10 lakh in some special-category states). Below that it is optional, though clients may still ask for it.