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5 Things A Freelancer Must Consider While Filing IT Return

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A freelancer is an individual who, for the long term, is self-employed or not dedicated to a single employer. Freelance employees are often represented by a firm or a temporary organization whereas some others work individually for professional websites to get paid. Income tax laws are significantly specific for freelancers as opposed to salaried employees. An individual who works as a freelancer is not allowed to claim some exemptions that are open for a salaried individual. Freelancers are entitled to claim their legitimate expenditures if they do so in regard to their employment. The income tax rates under which a freelancer is taxed do not make any disparity. As a salaried employee, the same income tax rates are applied to a freelancer respectively.

5 Things A Freelancer Must Consider While Filing IT Return
 

5 main elements that clarify a freelancer's income tax regulations

  • As applicable to salaried persons, freelancers can not seek the standard exemption of Rs 50,000.
  • On an individual basis, consultants can declare work-related costs endured. They are not entitled to claim any costs that are private and confidential.
  • Income is taxed under the term of "Profits and Business or Profession" as a consultant.
  • For workers employed as a consultant or a freelancer, exemptions under Section 80C, 80CCD, 80D, 80TTA etc are applicable.
  • A relatively limited amount of house rent and electricity bills can be claimed by consultants. On devices such as laptop, desktop, printer or any that are used for their work, freelancers or consultants can claim a deduction.
Read more about: it return
Story first published: Saturday, October 24, 2020, 15:00 [IST]
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