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Income tax calculator for online sellers

Selling online means business income — and a tax bill that depends on your regime and deductions. Estimate yours free, then plan ahead.

By the Launch My Office team · Updated 2026-06-22 · 6 min read

As an online seller your profit is taxable business income. Working out what you'll owe early helps you set aside cash and avoid an advance-tax shock. Our Income Tax Calculator gives you a quick estimate across both tax regimes.

How sellers are taxed

If you run as a proprietor or partnership, business profit is added to your other income and taxed at slab rates. Companies and LLPs are taxed separately. Your taxable profit is revenue minus allowable business expenses — marketplace fees, shipping, packaging, ads, software and more.

Old vs new regime

The new regime offers lower slab rates but fewer deductions; the old regime keeps deductions like 80C and HRA. The calculator shows both so you can compare.

Use the calculator in four steps

  1. Open the Income Tax Calculator.
  2. Enter your estimated annual income/profit.
  3. Add deductions if you'll use the old regime.
  4. Compare the tax under both regimes and pick the lower.
Keep clean books of marketplace settlements and expenses. Your taxable profit — not your gross sales — is what's taxed.

Don't forget advance tax

If your tax liability exceeds ₹10,000 in a year, you must pay advance tax in instalments. Estimate early with the calculator so each instalment is funded.

Small sellers: presumptive option

Many sellers qualify for presumptive taxation under Section 44AD, which lets you declare a fixed percentage of turnover as profit and skip detailed books.

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Frequently asked questions

Is the Income Tax Calculator free?

Yes, it's free and requires no sign-up. Enter your income to estimate tax under both regimes.

Is my GST turnover the same as taxable income?

No. Income tax applies to your profit (revenue minus expenses), not your gross GST turnover.

Which regime is better for sellers?

It depends on your deductions. The calculator compares both so you can choose the lower-tax option.

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  • ✓ Free consultation on VPOB, APOB & GST
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