New Delhi, July 23 -- A freelancer or independent professional may not have to pay tax on the entire amount earned through professional fees. Under Section 44ADA of the Income Tax Act, eligible professionals can opt for the presumptive taxation scheme, where 50% of their gross receipts are considered taxable income, while the remaining 50% is treated as a deemed deduction for expenses.

Dev Patel, Financial Advisor at 1 Finance, highlighted this provision in a recent post on X, explaining how many independent professionals may be missing out on this tax-saving option for AY 2026-27.

"A consultant billing Rs.60 lakh a year can legally pay tax on just Rs.30 lakh. No expense bills, no books, no audit. That is Section 44ADA, and most indepen...