Freelance Tax Calculator (India)

How This Calculator Works

This tool helps Indian freelancers understand their tax and compliance obligations based on annual earnings from Indian and foreign clients. Here’s how it calculates:

• GST (Goods and Services Tax): For Indian clients only, register if earnings exceed ₹20 lakhs/year and charge 18% GST. For foreign clients, services are exports (zero-rated). Legally, GST registration is optional below ₹20 lakhs, but recommended for exports to avoid notices—file an LUT (Letter of Undertaking) to invoice at 0% GST if getting paid in foreign currency (e.g., USD, even if converted to INR). LUT is optional unless claiming ITC (Input Tax Credit); file it before exports ideally, though possible later. Get FIRA (Foreign Inward Remittance Advice) from your bank and E-BRC (Electronic Bank Realisation Certificate) from DGFT as proof. File nil GST returns (e.g., GSTR-1, GSTR-3B) monthly/quarterly with LUT. GST is separate from income tax.
• Udyam Registration: If your turnover is under ₹5 crores, you qualify as a micro-enterprise under MSME rules. Registering on the Udyam portal (optional) can unlock benefits like easier loans or payment protection.
• 44ADA (Income Tax): If your earnings are ₹75 lakhs or less and cash receipts are 5% or less of total earnings (95%+ via bank), you can declare 50% of your income as taxable, simplifying bookkeeping. Pay advance tax in one installment by March 15 under 44ADA. Above ₹75 lakhs or if cash exceeds 5%, tax the full amount at slab rates (e.g., 30% above ₹15 lakhs, old regime). Your tax liability may also depend on residential status (Resident, Non-Resident) and benefit from DTAA (Double Taxation Avoidance Agreement)—get a TRC (Tax Residency Certificate) for relief.

Enter your earnings to see what applies. We assume foreign earnings are paid in foreign currency (e.g., via Upwork) and most payments are via bank transfer for 44ADA. Generate invoices (even if clients like Upwork don’t need them) and keep records (invoices, bank statements) for GST/ITR filing (due July 31). Consult a CA for your specific case!