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How to File ITR as a Freelancer in 2024

How to File ITR as a Freelancer in 2024
sukanya
Sukanya12 January 2024

Freelancing offers unparalleled freedom and opportunities, but it also comes with the responsibility of managing your finances and filing for taxes every year. As a freelancer, it is vital to file the ITR and comply with tax laws. 

This blog will talk about the tax liabilities for freelancers, the tax rates, the GST and TDS compliance, and the detailed process of filing ITR correctly.

What Is Freelancing According to Income Tax Regulations?

As per the Income Tax Department, earnings from freelancing are treated as earnings from businesses and professions when filing ITR for freelancers. The Income Tax Department has categorised earning income through physical and mental abilities under the ’profit and gains from business and profession’ when considering the tax liability. 

Freelancing According to Income Tax Regulations

Freelancers in India must file taxes under the purview of Income Tax and Goods & Services Tax). The GST implications require freelancers who earn more than Rs 20 lakh (for intrastate; Rs 10 lakh for hill and northeastern states) to register under GST. In India, a GST rate of 18% is applicable for most freelancing services. 

Rates of Income Tax Applied to Freelancers

Here is a detailed table to understand applicable freelance taxes in India for freelancers under the age of 60:

Income Tax SlabOld Tax RegimeNew Tax Regime(until 31st March 2023)New Tax Regime (from 1st April 2023)
Rs 0 - Rs 2,50,000NILNILNIL
Rs 2,50,000 - Rs 3,00,0005%5%NIL
Rs 3,00,000 - Rs 5,00,0005%5%5%
Rs 5,00,000 - Rs 6,00,00020%10%5%
Rs 6,00,000 - Rs 7,50,00020%10%10%
Rs 7,50,000 - Rs 9,00,00020%15%10%
Rs 9,00,000 - Rs 10,00,00020%15%15%
Rs 10,00,000 - Rs 12,00,00030%20%15%
Rs 12,00,000 - Rs 12,50,00030%20%20%
Rs 12,50,000 - Rs 15,00,00030%25%20%
More than Rs 15,00,00030%30%30%

If the freelancer earns more than Rs 1 crore as gross annual income, the freelancer is required to conduct a tax audit. Furthermore, a Tax Deducted at Source (TDS) of 10% is applicable for any amount exceeding Rs 30,000 paid by the freelancer to any professional. 

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