Tax Advice Archive
“Any income derived by way of freelancing job is taxable under the provisions of Income Tax Act. 1961 as “Profits and Gains from Business / Profession”.
There is not much information directed at freelancers (from India) on how to do Income Tax Computations. So, I have put together this ebook so as to enable a freelancer
Writing about Income-Tax is as knotty assignment. This eBook is ment to give you, THE Freelancer(YOU), an informed start., and does not claim to be a complete guide in itself
Freelancing is fondly referred to as “extra income” for reasons galore. Some want their hobby to pay for itself, while for someone else, it is about “test the waters” before taking the big-decision. But, that is beside the point. The point is – Income From Freelancing Is Indeed An INCOME, however small / marginal. And,
Not sure if what-you-do comes under freelance-earnings? Read the QA-bank from Income Tax Dept.Each section has additional questions. So, take your time to read and understand.
Freelancers typically tend to handle multiple clients to have a steady stream of income. So, let us chart out a typical freelancer’s likely income source(s) and payment-received structure.Use the guide to pick out income sources relevent to you. This is particularly useful if you are trying to do your own tax calculations
Entire income you receive is not taxed. It is the profit you make that is taxed. To compute the profit, you are allowed to deduct business expenses against the income.“In case of assets used partly for business and partly for personal uses, depreciation can be claimed on proportionate value of the asset.