Home |Goods and Service Tax (GST) | I am a freelance software developer. Do I have to pay Advance Tax (four times a year)? Or is calculating and paying self-assessed tax once a year sufficient?

I am a freelance software developer. Do I have to pay Advance Tax (four times a year)? Or is calculating and paying self-assessed tax once a year sufficient?

Shyamal Modi, Tax Advocate | Financial Advisor | Virtual CFO

Answered on April 17,2023

First of all, if your Net Taxable Income (Profit) exceeds Rs. 5 lakhs, the question of advance tax arises.

Secondly, If you are a professional who is covered u/s 44ADA, you can go for the presumptive scheme under which 50% of your revenue will be considered as your profit and be taxable.

If you go for the above scheme and your net profit after deductions exceeds Rs. 5 lakhs, you have to pay advance tax once a year before 15th March.

If you are not opting for the above scheme, you have to pay advance tax 4 times a year.

I recommend you to approach a Tax Professional to get a complete understanding and do Tax Planning to Optimise Tax Outgo according to your business.

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I am a freelance software developer. Do I have to pay Advance Tax (four times a year)? Or is calculating and paying self-assessed tax once a year sufficient?

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