i get a salary from my full-time job and i have recently started earning income from freelance projects on the side. my salary taxation is already taken care of by my employer. how should i pay tax on my freelance income and how can save and pay the least amount possible? which itr form should i fill, etc. please advise
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If you are a working professional providing technical consultancy which are covered under section 44ADA, then 50% of income earned (other conditions also fulfilled) should be shown as professional income (presumptive taxation). For this ITR3 or ITR4 can be filled dependent upon what are other sources of income.
If you do not fall in professions covered under section 44ADA, then section 44AD or relevant section would be applicable.
@Surbhi_Pal Can guide more.
Thank you for your reply Rohit! I need a little more clarity. I work as a creative director in an advertising agency and I get a salary of 38 lpa. Recently, I have started taking up writing projects outside work and earn a freelance income of 3 lpa. My salary taxation is done by my agency. How should I file taxes for my freelance income. that’s what i wanted to know. which ITR should I file, how can I save tax, etc.
Under freelancing, are you providing technical consultancy?
If it qualifies under section 44ADA, then you can opt under presumptive taxation scheme and show 50% of income from freelancing.
Form applicable would be ITR 3 in case there is income from Capital gains.
Form applicable would be ITR 4 in case there is no income from capital gains..
Best case would be to take professional help so as to minimise mistakes..
Hope this helps.