The FY 2026-27 slabs
Union Budget 2026 left the new tax regime’s slabs unchanged, so for FY 2026-27 (tax year 2026-27) they are the same as for 2025-26:
| Total income | Rate |
|---|---|
| Up to Rs 4,00,000 | Nil |
| Rs 4,00,001 – 8,00,000 | 5% |
| Rs 8,00,001 – 12,00,000 | 10% |
| Rs 12,00,001 – 16,00,000 | 15% |
| Rs 16,00,001 – 20,00,000 | 20% |
| Rs 20,00,001 – 24,00,000 | 25% |
| Over Rs 24,00,000 | 30% |
A rebate of up to Rs 60,000 makes the tax nil for total income up to Rs 12,00,000, and a 4% health and education cess applies on top of the tax. The Rs 75,000 standard deduction applies to salary, not to freelance income. The old regime remains available if you choose it, with different slabs and deductions.
Presumptive taxation for professionals
Freelancers in specified professions, including engineering, technical consultancy, design, accountancy, legal and medical work, can opt for presumptive taxation, known for years as section 44ADA. Instead of keeping full accounts, you declare 50% of gross receipts as profit (or more, if your real profit is higher). It applies where receipts are up to Rs 50 lakh, or Rs 75 lakh if no more than 5% of them were received in cash.
Its biggest practical benefit for cash flow: presumptive taxpayers pay all their advance tax in one instalment by 15 March, instead of four.
Advance tax: when it is due
If your tax for the year, after TDS, will be Rs 10,000 or more, you pay it in advance during the year:
| By | Regular taxpayer (cumulative) | Presumptive |
|---|---|---|
| 15 June 2026 | 15% | — |
| 15 September 2026 | 45% | — |
| 15 December 2026 | 75% | — |
| 15 March 2027 | 100% | 100% |
Paying late or short costs interest of 1% a month on the shortfall. TDS deducted by your clients counts towards the advance tax, so check your Form 26AS or AIS before each date.
Worked example: Rs 30 lakh of fees
A freelance designer with Rs 30,00,000 of fees in FY 2026-27, new regime, no other income
Under presumptive taxation, deemed profit is 50%: Rs 15,00,000.
| Slab | Tax |
|---|---|
| Rs 4,00,000 – 8,00,000 at 5% | Rs 20,000 |
| Rs 8,00,000 – 12,00,000 at 10% | Rs 40,000 |
| Rs 12,00,000 – 15,00,000 at 15% | Rs 45,000 |
| Cess at 4% | Rs 4,200 |
| Total | Rs 1,09,200 |
That is 3.6% of fees, payable in one go by 15 March 2027.
With full books and Rs 12,00,000 of real expenses, profit is Rs 18,00,000. The tax is Rs 1,60,000 plus Rs 6,400 cess: Rs 1,66,400, 5.5% of fees. It is due in four steps: Rs 24,960 by 15 June, Rs 74,880 cumulative by 15 September, Rs 1,24,800 cumulative by 15 December and the rest by 15 March.
Either way, the reserve should be built from every payment as it arrives. For the presumptive case that is about 3.6% of each invoice; for the books case, about 5.5%, with the instalment dates setting when it leaves the account.
The Income-tax Act, 2025
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered its sections, including the presumptive scheme long known as 44ADA and the rule that lets presumptive taxpayers pay in a single instalment. Commentary reports that the rates and limits carried over unchanged. Many guides still quote the old section numbers; check the new ones on the Income Tax Department’s site before you rely on a citation.
What this leaves out
- GST. If your turnover passes the registration threshold, GST on your invoices is a separate liability and a separate pot.
- Surcharge on very high incomes, and marginal relief just above Rs 12 lakh.
- Other income: salary, interest, capital gains and rent.
- The old regime, which can be better if you have large deductions.
- Eligibility. Not every kind of freelance work is a specified profession for presumptive taxation; check yours.
CashDesk covers India alongside the US, UK, Canada and Australia: it keeps a running tax reserve and shows the next advance tax date. It prepares figures; it does not file returns or give tax advice.