Which scheme applies to me?
| Professionals (old 44ADA) | Other freelancers (old 44AD) | |
|---|---|---|
| Who | IT and technical consultancy, engineering, architecture, legal, medical, accountancy, company secretaries, interior decoration, film artists | Writers, designers, marketers, translators, tutors, content creators and most other freelancers |
| Profit taken as | 50% of receipts | 6% of digital receipts, 8% of cash |
| Receipt limit | ₹50 lakh (₹75 lakh if cash is 5% or less) | ₹2 crore (₹3 crore if cash is 5% or less) |
| Leaving the scheme | No lock-in | Opt out and you can't return for the next 5 years |
Both schemes are now in section 58 of the Income-tax Act, 2025. If your work sits on the border, for example a designer who also builds websites, check with a chartered accountant once. For the full picture, read the freelancer income tax guide.
Do I still need to keep bills and books?
No, that's the main benefit. Declaring at least the scheme minimum means your expenses are assumed, without proof, and no tax audit is needed. Keep your invoices and bank statements anyway, since those prove your gross receipts.
When is advance tax due?
Under either presumptive scheme, you pay all your advance tax in a single instalment by 15 March instead of four quarterly ones. Missing it means interest of 1% a month (old sections 234B and 234C, now sections 424 and 425).