 ITR Rules for Freelancers: Usually, income tax stories talk about salaried people. We ignore freelancers. Today we will know how freelancers can file ITR. Along with this, if they file ITR under the old tax regime, then under which section can they claim tax deduction. Also, what is the tax slab for freelancers?
Which ITR form is correct for Freelancer?
Freelancer taxpayers can choose ITR 3 or ITR 4 to file ITR. There are different ITR forms for different uses, which are as follows-
- ITR 1- Salary
- ITR 2- Salary + Capital Gain
- ITR 3- Business + Capital Gain
- ITR 4- Income from business
It is very important to choose the right ITR form
Now let’s talk about what is the tax slab for freelancers. From the tax slab, you can know how much income a freelancer is eligible for tax filing.
What is tax slab?
How can freelancers file ITR?
Step 1- First of all, you have to calculate the total income of the current financial year.
Step 2- After this, the total expenditure and deductions incurred in the financial year will have to be calculated.
Step 3- Then login to the official website of Income Tax and enter all the required details.
Now let us know under which rules freelancers can claim tax deduction.
What are the sections?
- Section 80D- Money paid in medical insurance premium can be claimed under this section.
- Section 80E- If you pay interest on education loan, you can claim under this.
- Section 80EEA- If you have bought a house for the first time, that too on interest, then the interest money can be claimed under this section.
- Section 80G- If you donate for social work, then you can claim under this
- Section 80U- Under this a disabled person can claim deduction.
