Filing ITR as a freelancer? Know the rules that apply in India

Taxpayers who earn a living as a freelancer have the option of deducting expenses spent while working as a freelancer from their income.

New Delhi: With the advancement of technology, an increasing number of people are becoming interested in freelancing. However, there is still some uncertainty about the tax regulations that apply to freelancers and their earnings.

For tax purposes, freelance income is classified as 'earnings and gains from company or profession.' While this may seem surprising to some, it is because money is viewed as earnings from self-employment.

The following are the tax rules that will apply to freelancers' earnings in India:

Filing ITR

A freelancer, like any other individual, must file an income tax return each year. They can, however, only select ITR-3 or ITR-4. Another thing to keep in mind is that if a salaried employee earns an income from freelancing outside of their employment, they will be required to fill out an ITR form that is only available to people having income from business or profession.