Currently am working as a freelancer and a software engineer at a firm in Delhi. My company is deducting TDS every month based on tax slab bracket. simultaneously am working as a freelancer
by teaching students online am getting paid in dollars every month .
So here my ask is? Do i need to pay tax for freelancing? how much money I should pay in tax approximately and when I need to pay ?
every month will get around RS 2,24,000 to my bank account from USA
so it will be approximately 27 lakhs/year
for 27 -30 lakh rupees how much tax I need to pay ?
Is there any exemptions for me to benefit from this tax?
please suggest me points here
Considering your income situation, it has salary income from the firm in Delhi and freelance income from the US. Both of these incomes are taxable under the head “Income from Salary” and "Income from Business & Profession, hence making you file ITR 3.
If you have this income for FY 2023-24, you are required to file the return by 31st July 2024. Also, since your estimated tax liability in the FY exceeds ₹10,000, you will be required to pay advance tax every quarter. Here’s a Advance Tax Calculator
You will also be able to calculate your tax liability using this tool.
In case your income is for FY 2022-23, the due date to file the return was 31st July 2023. Since the date has passed, you can still file a belated return till 31st December 2023 along with a late penalty fee.
Here’s a read about Belated Return u/s 139(4).
In case of freelance income, you can claim expenses incurred to do the job from the income.
Here’s a read about Income Tax for Freelancers & Professionals : Guide - Learn by Quicko
Hope this helps!
Hi Shrutika_shah for Swift response!
Am yet to receive freelance money 50k but how can I file advance tax without knowing how much money will be getting for next 6-7 months ?
Approximately can you give any number if i receive 20lakhs rupees from September 2023- March 2024
How much tax I should pay. Even though you shared tax calculator but am laymen and hard to know all fields.
Please share your thoughts.
Advance tax is payable on the estimated income. Here’s a read on How to calculate advance tax?
Considering you’re a resident in India below 60 years of age, have an income of 20 lakhs from freelancing, and have no other expenses and deductions. The tax liability shall be approx 4.3 lakhs.
You can read in detail about Advance Tax Due Date lurking, time to pay up! ⏳.
Hope this helps.
Thanks for brief explanation
I just wanted to know where can I see if I got any money from freelance in ITR portal ? Will it be shown every month ?
The money received from your freelancing must be credited to your bank account. This income is to be reported in your ITR. Once you file the ITR it will be visible to you on your e-filing (ITD) portal.
If money is not visible in ITR under form 26 AS than i don’t need to pay tax right?
In your Form 26AS you will be able to see your TDS deducted from the income received and then claim the TDS already deducted as tax credits while filing your ITR and hence reduce your taxable income.
You can read more about Form 26AS - View & Download Tax Credit & Annual Information Statement - Learn by Quicko
The money received from the USA will be shown in your bank account.
You can also Ask an Expert for any further guidance.