Freelancer / professional (44AD / 44ADA presumptive) – India
Estimate monthly take-home in India (FY 2026-27 / AY 2027-28): simplified EPF, new- and old-regime tax slabs + cess + 87A, optional professional tax. Educational—not Form 16 or tax advice.
by Simon Bodych
Methodology & sources
India salary methodology (FY 2026-27)
FY 2026-27 / AY 2027-28 (current FY from 1 April 2026). Union Budget 2026 (Feb 2026) left tax slabs unchanged vs FY 2025-26. Educational — verify with incometax.gov.in, EPFO, ESIC.
Salaried employee — regime
The engine supports both new and old tax regimes (§115BAC). Compare mode returns net values for both.
New regime slabs (FY 2026-27)
Up to ₹4 L: 0 % • ₹4–8 L: 5 % • ₹8–12 L: 10 % • ₹12–16 L: 15 % • ₹16–20 L: 20 % • ₹20–24 L: 25 % • above ₹24 L: 30 %. Salaried standard deduction: ₹75,000. Health & Education cess 4 %.
§87A rebate + marginal relief
New regime: rebate up to ₹60,000 if taxable income ≤ ₹12 L. Above ₹12 L the Finance Act 2025 marginal relief caps tax at (income − ₹12 L) before cess (break-even ≈ ₹12.75 L). Old regime: ₹12,500 rebate if income ≤ ₹5 L.
Old regime basic exemption
Below 60: ₹2.5 L • senior 60–79: ₹3 L • super-senior 80+: ₹5 L. Salaried standard deduction ₹50,000. HRA (auto or manual), §80C (cap ₹1.5 L), §80D, other Chapter VI-A.
Surcharge + marginal relief
On taxable income: ₹50 L–1 Cr = 10 %, 1–2 Cr = 15 %, 2–5 Cr = 25 %, > 5 Cr = 25 % (new) / 37 % (old). Marginal relief applied at each threshold.
EPF / EPS / EDLI / Admin
Base = basic + DA (default capped at ₹15,000/month). Employee 12 %. Employer 12 % split: EPS 8.33 % on ₹15,000 (max ₹1,250) + balance to EPF. Plus EDLI 0.5 % and administrative charges 0.5 % (w.e.f. 01-06-2018).
ESI
Applies to gross ≤ ₹21,000/m (₹25,000 for persons with disability). Employee 0.75 %, employer 3.25 %. Employees with average daily wage ≤ ₹176 are exempt from the employee share.
NPS §80CCD(2)
Employer-NPS deduction: new regime 14 % of (basic+DA) for all employees (Finance Act 2024, effective FY 2025-26). Old regime: 14 % (govt) / 10 % (private).
HRA (old regime only)
Exemption = min(actual HRA, 50 % of basic+DA metro / 40 % non-metro, rent paid − 10 % of basic+DA).
Professional tax
State-dependent monthly levy (Article 276 caps the annual at ₹2,500). UI default ₹200/m.
Net → gross & CTC mode
Inverse calc via binary search. CTC mode back-solves gross so that CTC = gross + employer EPFO + employer ESI.
Freelancer / professional (§44AD / §44ADA)
Engine computes presumptive income: §44ADA (professionals) = 50 % of annual receipts (turnover cap ₹75 L when ≥ 95 % digital); §44AD (eligible businesses) = 8 % (cash) / 6 % (digital), turnover cap ₹2 Cr or ₹3 Cr (FY 2023-24+). Full tax under chosen regime including §87A and cess.
