Tax filing Income below 2.5 Lakh

Hi,
If a person only earns a maximum of 4k per month freelancing as a student, since the total earnings fall below 2.5 lakh slab, are any taxes to be paid, is the ITR to be filled regardless, also if the ITR has to be filled, this single income from freelancing is to be filled under which section.
Please brief on the above questions.

Hello @Sheirsh_Saxena !

If the income doesn’t exceed the basic exemption limit, you are not liable to file ITR or pay tax. As per Income Tax Laws, ITR must be mandatorily filed if gross total income during the financial year exceeds the basic exemption limit . You are liable to pay tax , if income exceeds the basic exemption limit.

Freelancers can file ITR form 3 or 4. If your annual receipts from professional income is below 50 lakhs, you can avail the benefit of section 44 ADA, you can read more about this from here.

Moreover, It is recommended to file your ITR even if it is not mandatory , because; it is considered as pre-requisite while applying for loans; visas; credit cards, you can claim your refund only when you have filed your ITR, you can carry forward your losses only when the ITR pertaining to the same has been duly filed.

Hope this helps!

Hi Aneesha, so is it fine if a person chooses not to file an ITR, if his total income stays below 2.5 lakh, whether it be freelancing income or salary, agricultural, Capital gains, dividends whatsoever.
Am I correct in my understanding.
Or is there a catch for certain types of income

Yes, it is fine if a person chooses not to file an ITR, if his total income stays below 2.5 lakh, whether it be freelancing income or salary, agricultural, Capital gains, dividends whatsoever. But it is recommended to file ITR because of the above mentioned reasons.