What is Section 58 (formerly section 44ADA) and who can use it?

Section 58 (formerly section 44ADA) is a presumptive taxation scheme for specified professionals — legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration and notified professions — with gross receipts up to Rs75 lakh in the FY (raised from Rs50 lakh where 95% of receipts are non-cash). You declare 50% of gross receipts as taxable income without maintaining detailed books.

Do freelancers need to pay advance tax?

Yes. If your total tax liability for the FY (after TDS) is Rs10,000 or more, you must pay advance tax in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Shortfalls attract interest under Sections 424 and 425 (formerly sections 234B and 234C) of the Income Tax Act.

Can a freelancer claim home office expenses as a deduction?

If you maintain books under ITR-3, a reasonable, proportionate share of rent, electricity, internet and depreciation on equipment used wholly and exclusively for your profession is deductible under section 34 (formerly section 37(1)). Under the Section 58 (formerly section 44ADA) presumptive route, expenses are deemed absorbed in the 50% margin and cannot be separately claimed.

Freelancer Tax

Relevant for:For Freelancers For Solopreneurs

Income Tax Compliance for Freelancers and Independent Consultants in India

Freelancers billing domestic or foreign clients have specific ITR obligations — presumptive taxation under Section 58 (formerly section 44ADA), advance tax payments, TDS reconciliation and foreign income reporting. CA-supervised annual tax compliance so you never miss a deadline or overpay.

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What's Included

Section 58 (formerly section 44ADA) eligibility check — professional services, receipts up to Rs75 lakh

ITR-4 (Sugam) filing under presumptive scheme or ITR-3 if books maintained

Advance tax computation and four-instalment calendar (June / Sep / Dec / Mar)

TDS credit reconciliation — Form 26AS, AIS and TIS

Foreign income reporting — Schedule FSI, Schedule TR, DTAA relief

GST annual return — GSTR-9 (where applicable)

Deductions — Sections 123, 126 (formerly sections 80C, 80D), home office, professional development

Our Process

STEP 1

Income & TDS Recon

Form 26AS, AIS and bank statements reconciled.

Apr–May

STEP 2

Advance Tax

Quarterly review and payment.

Quarterly

STEP 3

ITR Filing

ITR-3 or ITR-4 filed with foreign income disclosure.

31 July / 31 October

STEP 4

GST Annual

GSTR-9 filed where applicable.

By 31 December

STEP 5

Notice Response

S.143(1)/(2) and other notices handled.

As needed

Documents Required

PAN and Aadhaar
Form 26AS, AIS and TIS
All bank statements (including foreign payment platforms)
Invoices issued during the FY
LUT acknowledgement and FIRC / FIRA copies
Investment proofs (sections 123 and 126, formerly 80C and 80D, etc.)
GST returns (GSTR-1, 3B) for the year

Key Statutory References

Item	Reference
Presumptive Taxation	Section 58 (formerly section 44ADA), Income-tax Act, 2025 — 50% of gross receipts (up to Rs75L)
Advance Tax	Sections 207–209, Income Tax Act
TDS on Professional Fees	Section 393 (formerly section 194J), Income-tax Act, 2025 — 10%
Foreign Income	Schedule FSI / TR, Income Tax Rules 1962
DTAA Relief	Section 159 (formerly section 90), Income-tax Act, 2025
Interest on Shortfall	Sections 424 / 425 (formerly sections 234B / 234C), Income-tax Act, 2025

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Frequently Asked Questions

Related Services

GST Export of Services — LUT International Invoicing & Remittance Tax Advisory Tax Notice Support For Freelancers

Guides & Resources

GST for Freelancers Billing Foreign Clients

GST obligations when your clients are overseas.

Read →

GST Registration Guide

When and how freelancers should register for GST.

Read →

Payroll Compliance Checklist

If you hire contractors or employees in your freelance business.

Read →

Stay compliant — and keep more of what you earn

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Scope of services and important information

This page describes services offered by RTA & Associates, Chartered Accountants. It is published for general information and does not constitute tax, legal, financial or investment advice, nor an offer or solicitation to provide services in any jurisdiction where we are not qualified to do so.

Any engagement is governed by a separate written engagement letter, which sets out the scope of work, the deliverables, the fees and the limits of our responsibility. Nothing on this page forms part of that engagement or varies its terms.

Descriptions of timelines, processes, costs and outcomes are indicative and depend on your specific circumstances and on third parties — regulators, exchanges, banks and counterparties — whose timelines we do not control. Statutory and regulatory requirements change; the current position should be confirmed before you act.

We are Chartered Accountants. Where a matter requires legal advice, advice on the law of a country other than India, or a regulated investment recommendation, we will say so and you should take advice from an appropriately qualified and licensed adviser in the relevant field and jurisdiction.