ITR For Freelancers: Many people are not able to fill ITR by themselves, they take the help of CA for this. However, filing an income tax return is very easy. Learn here how a freelancer or consultant can file ITR.
ITR For Freelancers: Those who file income tax returns now have only two weeks’ time. Those who fill out late ITI will have to pay a fine. As the last date is getting closer, the number of people filing returns is increasing.
It is easiest for them to fill ITR
Salaried people do not have much trouble filing returns. At the same time, there has been a rapid increase in the number of people who work as freelancers or consultants instead of doing regular jobs. After the Corona epidemic, the trend of this work culture has increased rapidly in India. The process of filing an ITR is different for these people.
If a person is a freelancer or a consultant, then they cannot fill the ITR-1 or ITR-2 form like a salaried taxpayer. Such people will not get the benefit of a standard deduction of Rs 50,000, because their income does not come in the form of salary. However, these people can claim some deductions according to their expenses.
Choose this tax regime
Your slab and tax rate will be applicable according to the amount of income you have received during the year as a freelance or consultant. You cannot choose the tax regime every year like salaried people. Suppose the old tax regime is the default option for the financial year 2022-23 i.e. the current assessment year, but you can also choose the new tax regime. If you choose the new tax regime, you cannot change it. The new tax regime is going to be the default from this financial year.
Know what is Presumptive Taxation Scheme
Freelancers and consultants can choose this scheme under the Income Tax Act. The presumptive scheme under section 44ADA of the Income Tax Act is for such professionals who have not received more than Rs 50 lakh during 2022-23. From next year this millet will increase to Rs 75 lakh. These people can show 50% of the total income as business income. Accordingly, their tax will be calculated.
If the income is more than 50 lakh rupees, then they can avail of the benefit of the presumptive scheme under 44AD, in which the limit of receipts at this time is 2 crore rupees, which will be 3 crore next time. On the other hand, if the income is from commission, brokerage, or agency business then it will not get the benefit.
For them also, the deadline for filing income tax returns is 31 July 2023. On the other hand, if the consultant comes under the purview of audit under section 44AB, then it is till 31 October 2023. In this case, you will have to submit the tax audit report by 30 September 2023.
ITR will have to be filled with this form
You have to fill ITR-3 form. Same, on choosing the presumptive scheme, the ITR-4 form will have to be filled. If the income is more than Rs 50 lakh or the loss is to be carried forward, then only the ITR-3 form has to be filled.