The Indian freelance market is booming! But tax season can be daunting. Learn how to navigate it for a smooth ride.
Written by - Prathyush Gupta Designed by- Prince Kumar
Photo Credit: PEXELS
Under the Income Tax Act, 1961, freelancers are professionals. Pay tax on net earnings and are subject to ITR-4 Photo Credit: Pexels
Become a tax-saving superhero with meticulous record-keeping. Track income and expenses for claiming deductions. Photo Credit: Pexels
Don't lose those invoices! Keep a record of all client invoices, including dates, amounts and payment methods. Save year-end tax forms from freelancing platforms. Photo Credit: Pexels
Many business expenses are tax-deductible in India! Common deductions include: – Office supplies (printer ink, paper, etc.) – Internet & phone bills (work-related portion) – Software subscriptions (essential programs) Photo Credit: Pexels
The Income Tax Act offers a helping hand! Invest in options like PPF, EPF contributions, life insurance premiums and ELSS (up to a limit) to reduce taxable income under Section 80C. Photo Credit: Pexels
Don't miss out on profession-specific deductions! Graphic designers can claim website maintenance costs, while content writers can deduct development course fees. Explore possibilities! Photo Credit: Pexels
Don't wait till the last minute! If your projected tax liability is Rs 10,000+ in a financial year, pay advance tax in quarterly instalments. Photo Credit: Unsplash
The Goods and Services Tax (GST) might seem complex, but it's important. You might need to register for GST if your annual turnover exceeds Rs 20 lakh (check for current limits). Photo Credit: Pexels