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Freelancer tax.
Doctors, designers, developers and consultants can declare half of what they receive as profit and pay tax only on that, with no books to keep. Whether it beats paying on actual profit depends on your expenses.
Laptop and software, rent for a workspace, internet, travel for work. Only what you could prove with bills.
At least 95% comes by bank, UPI or card
I file under
The answer
Declare half as profit.
It saves ₹2,34,000 a year with no books to keep. Set aside about ₹9,100 a month, and pay it as advance tax by 15 March.
Presumptive
Better₹1,09,200
- Profit declared
- ₹15,00,000
- Books needed
- No
Actual profit
₹3,43,200
- Profit declared
- ₹25,00,000
- Books needed
- Yes
How it is decided
Your tax each way, for the year: the lower one wins
- Declare half as profitSmallest₹1,09,200Profit declared ₹15.0 L, no books
- Keep books₹3,43,200Profit declared ₹25.0 L
What this assumes
The presumptive scheme for professionals (section 44ADA in the old Act): up to ₹75 lakh of receipts if no more than 5% arrive in cash, ₹50 lakh otherwise. Declare at least 50% as profit. Advance tax under it is paid in one go by 15 March. GST registration is a separate question, usually needed above ₹20 lakh of receipts.
Rules and rates from
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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