How to claim expenses on Freelance Income?

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Hiral Vakil

Business and Profession Income
Section 80C
Section 80D
Section 80E
tax deductions

Income earned by freelancers is covered under the income head income from business and profession. The taxpayer can claim expenses on freelance income while filing their ITR on the Income Tax e-Filing portal. Freelancers/ Professionals also have an option to opt for the presumptive taxation scheme under the income tax act.

ITR for Professions u/s 44ADA (Presumptive Scheme)
A professional having a gross revenue upto Rs 50 lakhs can opt for the presumptive scheme of tax wherein he can straightaway offer 50% of the gross revenue as his taxable income.
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ITR for Professions u/s 44ADA (Presumptive Scheme)
A professional having a gross revenue upto Rs 50 lakhs can opt for the presumptive scheme of tax wherein he can straightaway offer 50% of the gross revenue as his taxable income.
[Rated 4.8 stars by customers like you]

Claim Expenses on Freelance Income

Presumptive taxation scheme for freelancers / professionals
If you're a freelancer, professional or consultant, you can actually pay income tax on only half of your gross annual income. You can do this by using the Presumptive Taxation Scheme
Read More
Presumptive taxation scheme for freelancers / professionals
If you're a freelancer, professional or consultant, you can actually pay income tax on only half of your gross annual income. You can do this by using the Presumptive Taxation Scheme
Read More

Points to Remember for Freelance / Consultants to Claim Expenses

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FAQs

Do freelancers get tax refunds?

Freelancers must file an annual tax return on Income Tax Portal, if you overpay your estimated tax, you’ll receive the excess amount back in the form of a tax refund.

At what rate shall freelancing income be taxable?

The same taxation slabs apply to the freelancing individuals as well. Incomes up to INR 2.5 lakhs are not taxed upon, income between the values 2.5 lakhs to 5 lakhs are taxed at 10%, 5 to 10 lakhs at 20%, and above 10 lakhs at 30%.

What do you mean by presumptive income?

Presumptive taxation scheme (PTS) allows you to calculate your tax on an estimated income or profit. However, the assessee is allowed to willingly declare income at a higher rate than the minimum of 6-8% of the total turnover.

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