{
  "$comment": "Machine-readable companion to https://valem.run/calculators/india/self-employed. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/india/self-employed",
  "dataUrl": "https://valem.run/calculators/india/self-employed.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "India section 44ada model by Valem (https://valem.run/calculators/india/self-employed), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/india/self-employed/verify",
  "country": "india",
  "countryName": "India",
  "formula": "self-employed",
  "formulaName": "Section 44ADA",
  "title": "Section 44ADA — India Freelancer Tax",
  "answer": "Under Section 44ADA an Indian professional declares exactly half of gross receipts as taxable income, keeps no books and faces no audit, and pays new-regime slab tax plus 4% cess on that half.",
  "lang": "en",
  "currency": "INR",
  "taxYear": "2026",
  "verification": {
    "claim": "shape-only",
    "statement": "The rates in this model are illustrative. Its 3 self-test cases confirm the engine reproduces the shape of the charge, but the schedule is not the official one, so the amount will not match a real bill. The cited sources name the document that would replace it.",
    "selfTestCases": 3,
    "ratesAreIllustrative": true,
    "sourcesCheckedOn": "2026-08-22"
  },
  "sources": [
    {
      "label": "Income Tax Department — Presumptive taxation under Section 44ADA",
      "url": "https://www.incometax.gov.in/iec/foportal/",
      "checked": "2026-08-22"
    },
    {
      "label": "Section 44ADA: latest rules for professionals (AY 2026-27)",
      "url": "https://www.caclubindia.com/articles/section-44ada-of-the-income-tax-act-latest-rules-for-ay-202627-55941.asp",
      "checked": "2026-08-22"
    }
  ],
  "terminalOutput": "netIncome",
  "inputs": [
    {
      "name": "grossReceipts",
      "type": "number",
      "label": "Annual gross receipts (INR)",
      "minimum": 0
    }
  ],
  "outputs": [
    {
      "name": "presumptiveIncome",
      "type": "number",
      "label": "Presumptive income (50%)",
      "format": "number",
      "formula": "$round(grossReceipts * $const.presumptiveShare, 2)"
    },
    {
      "name": "slabTax",
      "type": "number",
      "formula": "($t := presumptiveIncome; $round($const.r2 * $max([0, $min([$t, $const.b2]) - $const.b1]) + $const.r3 * $max([0, $min([$t, $const.b3]) - $const.b2]) + $const.r4 * $max([0, $min([$t, $const.b4]) - $const.b3]) + $const.r5 * $max([0, $min([$t, $const.b5]) - $const.b4]) + $const.r6 * $max([0, $min([$t, $const.b6]) - $const.b5]) + $const.r7 * $max([0, $t - $const.b6]), 2))"
    },
    {
      "name": "rebate",
      "type": "number",
      "label": "Section 87A rebate",
      "format": "number",
      "formula": "$round(presumptiveIncome <= $const.rebateLimit ? $min([slabTax, $const.rebateMax]) : 0, 2)"
    },
    {
      "name": "totalTax",
      "type": "number",
      "label": "Tax + 4% cess",
      "format": "number",
      "formula": "$round(($slabTax := slabTax - rebate; $slabTax + $slabTax * $const.cessRate), 2)"
    },
    {
      "name": "netIncome",
      "type": "number",
      "label": "Receipts after tax",
      "format": "number",
      "formula": "$round($max([0, grossReceipts - totalTax]), 2)"
    }
  ],
  "testCases": [
    {
      "description": "30,00,000 INR gross receipts — a typical full-time consultant",
      "given": {
        "grossReceipts": 3000000
      },
      "expect": {
        "presumptiveIncome": 1500000,
        "slabTax": 105000,
        "rebate": 0,
        "totalTax": 109200,
        "netIncome": 2890800
      }
    },
    {
      "description": "20,00,000 INR — the presumptive income lands inside the 87A rebate",
      "given": {
        "grossReceipts": 2000000
      },
      "expect": {
        "presumptiveIncome": 1000000,
        "slabTax": 40000,
        "rebate": 40000,
        "totalTax": 0,
        "netIncome": 2000000
      }
    },
    {
      "description": "70,00,000 INR — near the top of the scheme",
      "given": {
        "grossReceipts": 7000000
      },
      "expect": {
        "presumptiveIncome": 3500000,
        "slabTax": 630000,
        "rebate": 0,
        "totalTax": 655200,
        "netIncome": 6344800
      }
    }
  ],
  "spec": {
    "id": "self-employed-india",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "grossReceipts": {
          "type": "number",
          "minimum": 0
        },
        "presumptiveIncome": {
          "type": "number",
          "readOnly": true
        },
        "slabTax": {
          "type": "number",
          "readOnly": true
        },
        "rebate": {
          "type": "number",
          "readOnly": true
        },
        "totalTax": {
          "type": "number",
          "readOnly": true
        },
        "netIncome": {
          "type": "number",
          "readOnly": true
        }
      },
      "required": [
        "grossReceipts"
      ]
    },
    "constants": {
      "presumptiveShare": 0.5,
      "rebateLimit": 1200000,
      "rebateMax": 60000,
      "cessRate": 0.04,
      "b1": 400000,
      "b2": 800000,
      "b3": 1200000,
      "b4": 1600000,
      "b5": 2000000,
      "b6": 2400000,
      "r2": 0.05,
      "r3": 0.1,
      "r4": 0.15,
      "r5": 0.2,
      "r6": 0.25,
      "r7": 0.3
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ \"grossReceipts\": 3000000 }"
      }
    ],
    "derivations": [
      {
        "path": "$.presumptiveIncome",
        "expr": "$round(grossReceipts * $const.presumptiveShare, 2)"
      },
      {
        "path": "$.slabTax",
        "expr": "($t := presumptiveIncome; $round($const.r2 * $max([0, $min([$t, $const.b2]) - $const.b1]) + $const.r3 * $max([0, $min([$t, $const.b3]) - $const.b2]) + $const.r4 * $max([0, $min([$t, $const.b4]) - $const.b3]) + $const.r5 * $max([0, $min([$t, $const.b5]) - $const.b4]) + $const.r6 * $max([0, $min([$t, $const.b6]) - $const.b5]) + $const.r7 * $max([0, $t - $const.b6]), 2))"
      },
      {
        "path": "$.rebate",
        "expr": "$round(presumptiveIncome <= $const.rebateLimit ? $min([slabTax, $const.rebateMax]) : 0, 2)"
      },
      {
        "path": "$.totalTax",
        "expr": "$round(($slabTax := slabTax - rebate; $slabTax + $slabTax * $const.cessRate), 2)"
      },
      {
        "path": "$.netIncome",
        "expr": "$round($max([0, grossReceipts - totalTax]), 2)"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Self-employed net income",
          "layout": "vertical",
          "components": [
            {
              "id": "illustrativeNotice",
              "type": "alert",
              "variant": "warning",
              "label": "What this model leaves out",
              "text": "'Section 44ADA is a bargain struck in the open: declare half of gross receipts as profit and you keep no books, face no audit, and pay tax on that half no matter what you actually spent. Available to specified professionals up to 50 lakh of receipts, or 75 lakh where cash receipts stay under 5% of the total. The slab rates here are the new regime, which is the default; the standard deduction does not apply to self-employed income. Marginal relief just above the 87A rebate threshold is not modelled, nor is the surcharge on very high incomes, nor any state professional tax. Not tax advice.'"
            },
            {
              "id": "inputField",
              "type": "numericField",
              "label": "Annual gross receipts (INR)",
              "bind": "$.grossReceipts",
              "placeholder": "3000000"
            },
            {
              "id": "tiles",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "netIncomeTile",
                  "type": "statTile",
                  "label": "Receipts after tax",
                  "bind": "$.netIncome",
                  "format": "number"
                },
                {
                  "id": "presumptiveIncomeTile",
                  "type": "statTile",
                  "label": "Presumptive income (50%)",
                  "bind": "$.presumptiveIncome",
                  "format": "number"
                },
                {
                  "id": "rebateTile",
                  "type": "statTile",
                  "label": "Section 87A rebate",
                  "bind": "$.rebate",
                  "format": "number"
                },
                {
                  "id": "totalTaxTile",
                  "type": "statTile",
                  "label": "Tax + 4% cess",
                  "bind": "$.totalTax",
                  "format": "number"
                }
              ]
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "items": [
                {
                  "label": "Income Tax Department — Presumptive taxation under Section 44ADA",
                  "url": "https://www.incometax.gov.in/iec/foportal/",
                  "date": "2026-08-22"
                },
                {
                  "label": "Section 44ADA: latest rules for professionals (AY 2026-27)",
                  "url": "https://www.caclubindia.com/articles/section-44ada-of-the-income-tax-act-latest-rules-for-ay-202627-55941.asp",
                  "date": "2026-08-22"
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "30,00,000 INR gross receipts — a typical full-time consultant",
        "given": {
          "$.grossReceipts": 3000000
        },
        "expect": {
          "$.presumptiveIncome": 1500000,
          "$.slabTax": 105000,
          "$.rebate": 0,
          "$.totalTax": 109200,
          "$.netIncome": 2890800
        }
      },
      {
        "description": "20,00,000 INR — the presumptive income lands inside the 87A rebate",
        "given": {
          "$.grossReceipts": 2000000
        },
        "expect": {
          "$.presumptiveIncome": 1000000,
          "$.slabTax": 40000,
          "$.rebate": 40000,
          "$.totalTax": 0,
          "$.netIncome": 2000000
        }
      },
      {
        "description": "70,00,000 INR — near the top of the scheme",
        "given": {
          "$.grossReceipts": 7000000
        },
        "expect": {
          "$.presumptiveIncome": 3500000,
          "$.slabTax": 630000,
          "$.rebate": 0,
          "$.totalTax": 655200,
          "$.netIncome": 6344800
        }
      }
    ]
  }
}