Specified professionals — the classic list covers legal, medical, engineering, accountancy, architecture, technical consultancy, interior decoration, and similar professions; in practice it covers most knowledge-work freelancers (writers, designers, developers, consultants). Conditions: gross receipts ≤ ₹75 lakh in the year, and at least 95% received through banking channels (lower digital share drops the threshold). If you qualify, you declare 50% of receipts as profit and are freed from maintaining books of account and from tax audit on this income.

It is the Section 87A rebate, not an exemption. Tax is first computed on the normal slabs — on ₹10 lakh that is ₹40,000 — and then the rebate (up to ₹60,000) cancels it entirely, provided total taxable income is ≤ ₹12 lakh. The rebate only applies to slab-rate income. Note the cliff: at ₹12,00,001 the rebate vanishes and you are taxed from the ₹4 lakh slab upward. Marginal relief softens the first band above the threshold so tax cannot exceed the excess over ₹12 lakh, but the calculator does not model that fine detail — treat near-threshold results as approximate.

Yes, since FY2023-24 the new regime under Section 115BAC is the default. You file under it unless you actively opt out for the old regime. For most freelancers this is convenient because the new regime usually wins — the old regime only competes when you have substantial Chapter VI-A deductions (80C investments, 80D insurance, HRA) that the new regime disallows. This calculator does not model those deductions, so treat an "old regime wins" result as a prompt to do the full deduction math, not a final answer.

When your real expenses exceed 50% of receipts. 44ADA deems profit at 50% no matter what you spent. If you genuinely spend 60% (expensive subcontractors, ad spend, equipment), actual books give a smaller taxable income. The crossover is exactly at the 50% cost ratio. Also note: once you opt out of 44ADA, you generally cannot flip back for five years — so the choice has a tail. Compare with the method selector, then commit deliberately.

The Health and Education Cess: 4% levied on the income-tax payable (after rebate, before surcharge). It is not a separate slab — it simply multiplies your computed tax by 1.04. On a ₹2,00,000 tax bill it adds ₹8,000. The calculator applies it to both regimes automatically. (There is no cess when the rebate zeroes the tax — 4% of zero is zero.)

No — income tax, GST, and TDS are separate systems. 44ADA only simplifies how you compute taxable income. If clients deduct TDS under Section 194J (10% on professional fees above the threshold), that is advance tax credited against your final bill — claim it via Form 26AS/AIS. GST registration depends on turnover thresholds (₹20 lakh for services, ₹10 lakh in special-category states) regardless of your income-tax method. The calculator covers income tax only.

44ADA is unavailable — you must use actual books (and face audit requirements). The calculator detects this automatically: above ₹75 lakh of gross receipts it falls back to receipts-minus-expenses even if 44ADA is selected, and flags it in the taxable-income line. At that scale you should be working with a CA year-round, not a web calculator.

Because its slabs are steeper and its rebate is smaller. Old regime: 20% from ₹5–10 lakh where the new regime charges 5–10%; 30% above ₹10 lakh where the new regime charges 10–25% until ₹24 lakh. The old regime was designed around deductions — without 80C/80D/HRA to claim, you pay the steeper rates for nothing. The new regime trades deductions for lower rates, which suits freelancers whose "deductions" are mostly business expenses already netted out of profit.

Yes — this calculator shows the annual bill, not the payment schedule. If your total tax liability exceeds ₹10,000 in a year, advance tax is due in installments (15% by June 15, 45% by September 15, 75% by December 15, 100% by March 15), and shortfalls attract interest under Sections 234B/234C. 44ADA optants get a concession: the entire advance tax can be paid in one installment by March 15. Missing advance tax is the most common avoidable penalty for freelancers — calendar it.

Taxable in India if you are resident, regardless of where it lands. Export of services is zero-rated for GST (with LUT), but income tax applies to the rupee value of foreign receipts. Keep FIRC (Foreign Inward Remittance Certificates) from your bank for documentation. The calculator works in rupees — convert foreign receipts at a reasonable annual rate and enter the total.

Verified against multiple FY2025-26 sources on 2026-09-25, but the Budget can change them. The slabs, ₹12L rebate, 4% cess, and ₹75L 44ADA limit are all as announced for FY2025-26 (AY2026-27). The Income Tax Act 2025 takes effect from April 2026, though 1961-Act provisions govern AY2026-27. Always re-check incometax.gov.in for the assessment year you are filing before relying on any estimate.

Only for the freelance portion. Salary income gets the ₹75,000 standard deduction under the new regime (lifting the zero-tax point to ₹12.75 lakh for the salaried) and follows the same slabs on the combined total. Mixed income — salary plus freelance — must be computed on aggregate income with salary-specific adjustments. Use this tool to size the freelance component, then have a CA do the combined computation.