Freelancer Tax IndiaFreelancer tax in India: presumptive income
Work out the deemed income and income tax of a freelancer under section 58 of the Income-tax Act, 2025, read on 13 November 2026. Nothing you type leaves your device.
Worked example
A software developer (information technology is a specified profession) with gross receipts of ₹30,00,000 is taxed on 50% = ₹15,00,000 of income. Income tax and cess in the new regime for 2026-27 come to about ₹1,09,200. At ₹24,00,000 of receipts the income is ₹12,00,000 and the tax is ₹0, because of the new-regime rebate.
Common questions
How is a freelancer taxed under the presumptive scheme?
Under section 58(2) Table serial 3 of the Income-tax Act, 2025, a resident individual in a specified profession is taxed on 50% of gross receipts, or the profit actually earned if that is higher, when receipts do not exceed ₹50 lakh (₹75 lakh if cash receipts are 5% or less).
Can I claim expenses on top?
No. Section 58(4) says no loss, allowance or deduction is allowed against the income computed under section 58(2). The 50% (or 6% and 8%) is meant to cover your costs.
What if I earned less than the deemed profit?
You can declare the lower profit, but if your total income is above the exemption limit you must keep books of account (section 62) and get the accounts audited (section 63), under section 58(3).
Sources
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 58 (presumptive taxation), section 62(4) (specified profession), section 263 (due date of the return) and section 408 (advance tax). The enacted text was read on 13 November 2026.
- Tax rates for the tax year 2026-27 and the rebate: the Tax Slabs section of this family, which is built from the Finance Bill 2026 memorandum and the Income Tax Department pages (see its own sources).
Rules read on 13 November 2026 from the Income-tax Act, 2025. This site is independent, not connected with the Income Tax Department, and gives information, not tax advice. Whether your work is a "specified profession" and which scheme suits you depend on your facts: ask a chartered accountant.