Freelance income refers to earnings from self-employment activities. In India, freelancers work across various sectors, such as writing, design, programming, and consulting. They receive payment for their services directly from clients without a long-term employer-employee relationship.
How Freelancers Save Tax in India
- Track Expenses:
Maintain records of all business-related expenses like software, internet,
travel, and office supplies, which can be deducted from taxable income.
- Section 44ADA:
For professionals, this presumptive taxation scheme allows declaring 50%
of gross receipts as income, simplifying tax calculations.
- Claim Deductions:
Utilize deductions under Sections 80C, 80D, and 80G for investments,
health insurance premiums, and charitable donations.
- GST Registration:
If annual income exceeds ₹20 lakhs, register for GST to claim input tax
credit on business expenses.
- Timely Payments:
Pay advance tax quarterly to avoid interest penalties.
By implementing these strategies, freelancers can effectively manage their taxes and maximize their savings.
Join this platforms as a freelancer and be your own boss
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