Section 44ADA is the most powerful tax-saving provision for Indian freelancers that most people don't know about.
What Is Section 44ADA?
It's a Presumptive Taxation Scheme — instead of tracking every expense, you declare 50% of gross receipts as your taxable income. That's it.
Who Qualifies?
Eligible professionals include: IT consultants, doctors, lawyers, engineers, architects, designers, and any technical service provider with gross receipts under 75 lakhs/year.
Real Tax Saving Example
Freelance developer earning 30 lakhs/year:
| Method | Taxable Income | Tax Paid |
|---|---|---|
| Normal | 30L - actual expenses | Variable |
| 44ADA | 15L (50% flat) | ~2.1L |
No bookkeeping needed. No CA required for books. Just file ITR-4.
Free Section 44ADA Calculator
Calculate your exact tax under old vs new regime with all deductions:
Section 44ADA Calculator India
Originally published at GlobalInfoWiki
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