Tax guide

Tax Filing Guide for Freelancers

Complete guide for freelancers and consultants on income reporting, expenses, advance tax, and ITR filing.

Published 2024-06-10

Track Your Income

Maintain records of all freelance income.

  • Keep copies of all invoices issued
  • Track payments received (date, amount, client)
  • Note TDS deducted by clients
  • Maintain separate bank account (recommended)
  • Track international payments and exchange rates

Document Business Expenses

Keep records of all legitimate business expenses.

  • Internet and phone bills
  • Computer and equipment purchases
  • Software and tool subscriptions
  • Co-working space / home office expenses
  • Professional development and courses

Choose Taxation Scheme

Select between regular and presumptive taxation.

  • Regular: Actual profit (Income - Expenses)
  • Presumptive 44ADA: 50% of gross receipts as profit
  • Presumptive limit: ₹75 lakh (₹50L if cash > 5%)
  • No expense documentation needed for presumptive

Pay Advance Tax

Quarterly advance tax payments if tax > ₹10,000.

  • June 15: 15% of estimated tax
  • September 15: 45% of estimated tax
  • December 15: 75% of estimated tax
  • March 15: 100% of estimated tax