Freelancers don't have an employer deducting tax each month, so the law asks you to pay it during the year as advance tax. Miss it and you pay interest, even if you file on time.
From tax year 2026-27 the rules sit in the Income-tax Act, 2025. The section numbers changed, but the dates, percentages and interest didn't.
Who has to pay, and when
You pay advance tax if your tax for the year, after TDS, will be ₹10,000 or more. Resident senior citizens with no business income don't have to.
| Due date | Without 44ADA (cumulative) | With 44ADA |
|---|---|---|
| 15 June 2026 | 15% | Optional |
| 15 September 2026 | 45% | Optional |
| 15 December 2026 | 75% | Optional |
| 15 March 2027 | 100% | 100% |
Interest if you pay late or too little
- Section 425 (old 234C), deferment. 1% a month on the shortfall at each date: 3% for June, September and December, 1% for March. The shortfall is rounded down to the nearest ₹100.
- Section 424 (old 234B), default. If less than 90% of your tax is paid by 31 March, 1% a month on what's unpaid, from April until you pay it.
Interest is simple, not compound, and it's small next to the tax itself. But it can't be waived, so it's worth paying on time.
Worked examples
Example: ₹30 lakh of receipts under 44ADA
Income: 50% of ₹30,00,000 = ₹15,00,000. Tax in the new regime: ₹1,09,200 with cess.
Pay ₹1,09,200 by 15 March 2027. Miss it, and you'd owe ₹1,092 under section 425, plus about ₹4,368 under section 424 if you only pay when filing in July.
Example: ₹18 lakh profit, no 44ADA
Tax in the new regime: ₹1,66,400.
Pay ₹24,960 by 15 June, ₹49,920 by 15 September, ₹49,920 by 15 December and ₹41,600 by 15 March.
Pay nothing until you file in July, and interest comes to ₹8,399 under section 425 plus ₹6,656 under section 424.
Example: Indian clients who deduct TDS
On ₹30 lakh of fees, clients deducting 10% hold back ₹3,00,000, far more than the ₹1,09,200 tax under 44ADA.
No advance tax is due, and you'll get about ₹1.9 lakh back when you file.
To check your tax under 44ADA in more detail, use the Section 44ADA calculator.
How to pay
- On the income tax e-Pay Tax page, choose the Income-tax Act, 2025 and tax year 2026-27.
- Pick advance tax (minor head 100), not self-assessment tax.
- Pay by net banking, UPI or card, and keep the challan number for your return.
How to use this calculator
- Enter what you expect clients to pay you between April 2026 and March 2027.
- Choose presumptive taxation (44ADA) or tax on actual profit.
- Add other income and the TDS your clients and bank have deducted.
- Tick the payments box to check interest on anything paid late or short.
FAQs
Do freelancers have to pay advance tax?
Yes, if the year's tax after TDS is ₹10,000 or more. Salaried people usually don't, because their employer deducts tax every month.
When is advance tax due for 44ADA freelancers?
In one instalment by 15 March. Under presumptive taxation you don't have to pay in June, September or December, though you can.
What if I miss an instalment?
You pay simple interest of 1% a month on the shortfall: 3% for a missed June, September or December instalment and 1% for March. Pay as soon as you can to stop further interest under section 424.
Has the section number changed?
Yes. From tax year 2026-27, advance tax is in sections 403 to 408 of the Income-tax Act, 2025, and interest is in sections 424 and 425. The rules and dates are the same as the old 207 to 211, 234B and 234C.
Does TDS count towards advance tax?
Yes. Tax your clients deduct (usually 10% of professional fees) is taken off your tax first, and only the rest is paid as advance tax.
Sources
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.