Freelancer Tax Guide: How to File ITR for Freelancers#
Who is a Freelancer?#
Self-employed professional earning income from clients without employment relationship.
Income Calculation#
- Gross receipts - Expenses = Net Income
- Business income method orReceipt basis
Tax Rates#
- Up to ₹3L: Nil
- ₹3-6L: 5%
- ₹6-9L: 10%
- ₹9-12L: 15%
- ₹12-15L: 20%
- Above ₹15L: 30%
Deductions Available#
- Office expenses
- Equipment (over ₹5,000 capitalized)
- Internet/Phone
- Professional subscriptions
- Travel for work
GST for Freelancers#
- Registration if turnover > ₹20L
- Composition option available
- File GSTR-1 quarterly
ITR Filing#
- Use ITR-3 (Business)
- Maintain books of accounts
- Audit if income > ₹25L
Conclusion#
Freelancers must plan taxes carefully.