Freelancer vs Salary Simulator – Net Income Calculator India | INDwallet
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    INDwallet › Tools › Freelancer vs Salary
    Salary vs Freelance · India Tax · In-Browser

    Freelancer vs Salary.
    Find your better path.

    Not a budgeting app. A financial operating system for India.

    Gross vs net — after expenses, tax, and EPF. Adjust the sliders and see the winner instantly.

    🧮 Run the Comparison 📋 Tax Regime Tool →
    ✔ 100% Free ✔ No Login ✔ No Data Stored ⚡ Takes under 30 seconds 🔒 Data stays in your browser
    ₹8.4L
    💼 Salary Net
    ₹9.2L
    💻 Freelance Net
    +₹0.8L
    📊 Difference
    Freelance
    🏆 Winner
    🎛️
    Your income scenariosDrag to compare in real time
    Salary CTC (₹)12,00,000
    Freelance Gross (₹)15,00,000
    Business Expenses (₹)2,00,000
    Tax RegimeNew
    Freelance wins
    💼 Salary net / year₹8.4L
    💻 Freelance net / year₹9.2L
    📊 Difference+₹0.8L
    💰 Salary in-hand / month₹70,000
    💡 Insight: Adjust sliders to see which path works for your numbers.
    📊
    Visual comparisonLive updates with every slider move
    📊
    Net Annual Income
    Gold: Salary · Blue: Freelance
    💸
    Freelance: Gross vs Net
    See what expenses and tax take away from gross income.
    📖
    Your income comparisonBased on your current slider values
    • Salary CTC: ₹12,00,000 → net ₹8.4L (₹70,000/month after EPF and tax).
    • Freelance gross: ₹15,00,000 → expenses ₹2,00,000 → net ₹9.2L.
    • Winner: Freelance by ₹80,000 annually.
    • Key consideration: Salary includes EPF (12% of basic), gratuity, and health cover worth 10–15% of CTC. Track actuals in the Income Wallet.
    ✅
    Best practices before making the switchSix things to get right
    • Compare net, not gross: Freelance must account for software, internet, travel, coworking. Use the Expenses Wallet to track every rupee.
    • Salary hides real value: EPF (12% of basic), gratuity (~4.8%), paid leave, and health insurance add 10–15% to your CTC. Include these in your comparison.
    • Freelance tax is different: Income taxed under “Profits & Gains.” You can deduct expenses but must pay advance tax if liability exceeds ₹10,000. See the Tax Regime Simulator. Per the Income Tax Department of India, freelance income is reported under Profits and Gains of Business or Profession.
    • GST threshold: If freelance gross exceeds ₹20L, you must register for GST and charge 18% on invoices.
    • Build first, then switch: Start freelancing while salaried. Build 12 months of pipeline and savings before going full-time.
    • Bigger emergency fund: Freelance income is irregular. Maintain 12 months of expenses — not 6. Use the Emergency Fund Calculator to set your target.

    💡 Run the numbers in real context

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    Frequently asked questions

    net incomefreelance taxEPFbusiness expensesadvance taxGSTstabilityregime comparison
    📊 Net Income
    Freelance gives ₹9.2L vs salary ₹8.4L — a difference of ₹80K. Track actuals with the Income Wallet.
    Gross freelance income minus business expenses (₹2L) minus income tax on the remaining amount. There’s no TDS withheld — you’re responsible for advance tax payments.
    Employer EPF (12% of basic), gratuity (~4.8%), paid leave, and often health insurance — together worth 10–15% of CTC. See the Wealth Wallet for tracking.
    🧾 Tax Treatment
    Freelance income is taxed as “Profits & Gains from Business or Profession.” The same slabs apply but you can deduct business expenses first. Compare regimes with the Tax Regime Simulator.
    Yes — if your estimated tax liability exceeds ₹10,000 for the year, you must pay in four instalments (June, September, December, March). Missing instalments attracts interest under Sections 234B and 234C.
    If your freelance gross income exceeds ₹20L in a financial year, GST registration is mandatory. You’ll need to charge 18% GST on invoices and file monthly/quarterly returns.
    💼 Business Expenses
    Internet, software subscriptions, equipment, coworking space, travel, phone bills, and professional development — all deductible. You’ve currently set ₹2L in business expenses. Track every rupee in the Expenses Wallet.
    Yes — computers qualify for 40% depreciation under the Income Tax Act. If your laptop cost ₹80,000, you can deduct ₹32,000 in the first year as a business expense.
    🎁 Stability & Planning
    Maintain 12 months of essential expenses as an emergency fund. Budget on your 3-month rolling average. Use the Emergency Fund Calculator and track in the Wealth Wallet.
    Almost always yes. Build 3–6 months of freelance revenue while salaried, save 12 months of expenses, then make the switch. The Savings Sprint Simulator can help you build that buffer faster.

    Know the number.
    Make the move.

    The comparison is done. Now track whether you’re hitting those numbers — with the four wallets that work the way Indian finances actually work.

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