I work as a freelancer from home and receive income from clients. Can I claim expenses such as internet bills, electricity charges, rent, and office equipment as business expenses while filing my income tax return? What records should I maintain to support these claims?
Yes. If you are a freelancer and your income is taxed under “Profits and Gains from Business or Profession,” you can claim a reasonable portion of home office expenses such as rent, electricity, internet, and maintenance, provided they are used for business purposes. However, if you opt for the presumptive taxation scheme under Section 44ADA, individual expense claims are generally not allowed because a 50% expense deduction is already presumed.