Freelancer income & rate calculator
Start from the take-home you want. See what to bill per year, per hour and per day, and which tax method costs less.
Example result
- Bill at least (per year)
- ₹13,80,000
- Hourly rate
- ₹1,000
- Day rate
- ₹8,000
- Monthly take-home
- ₹1,00,000
- Lower tax under
- Presumptive (section 58, Income-tax Act, 2025)
- Income tax for the year (incl. cess)
- ₹0
- Tax at this billing — presumptive
- ₹0
- Tax at this billing — regular
- ₹0
Presumptive scheme vs regular computation
| Method | Billing needed / year | Taxable income | Tax | Take-home / month | |
|---|---|---|---|---|---|
| Presumptive — 50% of receipts | ₹13,80,000 | ₹6,90,000 | ₹0 | ₹1,00,000 | Best option |
| Regular — receipts minus expenses | ₹13,80,000 | ₹12,00,000 | ₹0 | ₹1,00,000 | Also possible |
How this is calculated
FID starts from the take-home you want and works backwards to the yearly billing that delivers it after business expenses and income tax. It solves this separately for two ways of computing taxable income and recommends the one that needs less billing.
Take-home = receipts − business expenses − income taxPresumptive: taxable income = deemed % × receiptsRegular: taxable income = receipts − business expensesHourly rate = yearly billing ÷ (billable hours per week × (52 − weeks off))
- FY 2026-27: presumptive scheme under section 58, Income-tax Act, 2025. Deemed income 50% of gross receipts. Available when receipts are up to ₹50 L, or ₹75 L when cash receipts are 5% of receipts or less.
- FY 2025-26: presumptive scheme under section 44ADA, Income-tax Act, 1961. Deemed income 50% of gross receipts. Available when receipts are up to ₹50 L, or ₹75 L when cash receipts are 5% of receipts or less.
Tax uses the same slabs, rebate, surcharge and cess as the income tax calculator. Business income gets no standard deduction, and no other deductions are applied. Under the presumptive scheme you may declare more than the deemed share but never have to, and expenses are treated as already covered. If you declare less than the deemed share, you need books of account and possibly a tax audit. The scheme is only for resident individuals and firms (not LLPs) in a specified profession.
Not included: GST, advance-tax interest, other income, and old-regime deductions such as 80C. Receipts are before GST.
Questions
What is the presumptive scheme for professionals?
Resident individuals in a specified profession whose gross receipts are within the limit can declare a fixed share of receipts as income and skip detailed books of account. FID shows the section, share and limits for the year you choose, taken from its rates table.
Which professions are covered?
Specified professions such as legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and film work, plus others notified by the CBDT. Many software, design and writing freelancers file as technical consultants, but check whether your work is a specified profession before you rely on the scheme.
Why does regular computation sometimes need less billing?
Under regular computation you are taxed on receipts minus actual expenses. If your expenses are more than the deemed share leaves room for, your actual profit is lower and so is the tax. You then need proper books, and possibly an audit.
Does this include GST or advance tax?
No. Receipts are before GST. You may need GST registration once your turnover crosses the threshold for services. Under the presumptive scheme, advance tax is generally due in one instalment by 15 March.
Estimates for educational purposes only. Not financial, tax or investment advice.