How to calculate my tax if I have salary + freelancing income?

Asked 1 Sept 2025·2647 views

I work as a software developer with a CTC of ₹18 lakhs per annum. This year I also did some freelance web development work and earned an additional ₹3 lakhs. I have investments in ELSS worth ₹50,000 and my company deducts TDS monthly. How do I calculate my total tax liability? Do I need to pay advance tax? How do I claim HRA if I live in a rented apartment in Bangalore?

Asked by Rajesh Kumar

2 Answers

Your total income is ₹21 lakhs. Under the old tax regime, after standard deduction of ₹75,000, you get ₹20.25 lakhs taxable. Your tax slabs would be: nil up to ₹3 lakhs, 5% on ₹3-6 lakhs (₹15,000), 20% on ₹6-12 lakhs (₹1,20,000), and 30% on the amount above ₹12 lakhs (₹2,47,500). Total approximately ₹3,82,500 minus 80C deduction of ₹50,000 = ₹3,32,500.

Answered by Rajesh Kumar · 3 Sept 2025

Yes, you must pay advance tax since your freelance income exceeds ₹10,000 in a year. The due dates are 15th June (15%), 15th Sept (45%), 15th Dec (75%), and 15th March (100%). You can calculate using the income tax department's e-filing portal or an app like Cleartax.

Answered by Anita Desai · 2 Sept 2025