Tax on the income of freelancers and consultants

Form GSTR-2B is Now Available on GST Portal for Taxpayers
September 3, 2020
File your ITR and save yourself from a penalty.
October 8, 2020

Tax on the income of freelancers and consultants

“Profits and Business or Profession” are the sources from where the tax is filed. While the payrolls are taxable inside the administrator salaries. As a salaried person, one can claim up to INR 50,000 as a conventional reduction to take charge of costs taken towards the income without submitting any documentary proof. For the consultant, there is no method to claim for deduction towards the income obtained through freelancing.

On an actual basis, one is enabled to claim the expenses by the person for his work. It includes expenses like mobile expenses, printing and stationery, conveyance expenses, and other things after excluding personal use.

One can claim the small division of house rent and electricity bills for the house. In addition to that devaluation on computers and maintenance can be claimed.

The investments arranged are enumerative, one can claim any other expense if one can discover the same has been contracted for operating as a counsellor. The net of trained charges collected covering the charges contracted is taxable for the head “profits and gains of business and profession”.

All payrolls will get added and are taxed if in case one has an income of interest, dividend or capital gains. One can claim for the interest paid on the home loans etc with the specific limits but one has to tell all the sources of the income. Deductions under Section 80 C, 80CCD, 80D, 80TTA one could claim these deductions from the income.

Indeed if one is paying the rent then he/she can insist the same under section 80GG up to INR 5,000 per month. The applicable tax is levied on the slab rates applied to an individual. While some capital gains have taxed at the same rate.

An income that is earned by the freelancer or the writer is not eligible to claim for a concession on the same. Thus these have to file the tax returns in Income Tax Return 3. There are the same rates i.e no difference through which the tax on the income of a freelance writer can be compared to the salaried person.