Hema Kulkarni
KF Mentor
Guys, I have some freelancing income on the side (not a lot). How should I include that in my taxable income?
Taxation for Freelancers
- Thread starter Hema Kulkarni
- Start date
anuragmukherjee28
Moderator
This bekifaayati reel might help you -
,
You might not even required to pay taxes
You might not even required to pay taxes
Kartik Mahajan
KF Ace
Is there any tds deducted under relevant section by the company?
You can verify the same from form 26as
Hema Kulkarni
KF Mentor
Oh wow. Hadn't seen this video
Manoj Kohli
KF Expert
If i'm not the rules have changed this year, can anyone please confirm on this?
Pahulpreet Kaur
KF Mentor
As per new change, the limit of Rs 50 lakhs has been increased to Rs 75 lakhs this year for using 44ADA
Hema Kulkarni
KF Mentor
Thank you @Pahulpreet Kaur , this is what I was looking for.
Just 1 query - what if I have both Freelancing Income and Salary, will this section still be applicable?
Pahulpreet Kaur
KF Mentor
Yes, it will be applicable only on the income you earned through freelancing. For Eg: If you earned 10lakhs through salary and 5 lakhs from freelancing then you can use 44ADA on that 5lakhs and can show taxable income as 12.5 lakhs (here am not considering any other deductions or exemptions that you may claim)
Best Part is that if you go by old tax regime you can get Chapter VI, i.e. Section 80 deductions also after applying 44ADA
Best Part is that if you go by old tax regime you can get Chapter VI, i.e. Section 80 deductions also after applying 44ADA
arjungoyal12
KF Mentor
Are you a freelancer as well?
Pahulpreet Kaur
KF Mentor
No, I work as a consultant with a US firm so it can be considered as Freelance. The only benefit is that in such case you get to use 44ADA whereas had I been an employee to the company I would not have got those benefits
CAKaushik
KF Rookie
You are required to pay tax, if freelancing income is not your primary source of income then it is to be included in head "Income from Other Sources" and will be taxed at normal slab rates. You can also claim any genuine expenditure which you have incurred to earn that income against that income in the same head.
If freelancing is your primary source of income and constitutes a substantial amount that it is better to consider that income in head "Profits & Gains of Business and profession" instead of "Income from Other Sources"
Hema Kulkarni
KF Mentor
Thank you for this. This puts things in perspective.
Will have to figure out my strategy to best optimise for tax planning
Can anyone here please tell me, in order to represent myself as a proprietor/freelancer, what business registration do I need to do, to take benefits of section 44ADA?
Shop and establishment or Udhyog Aadhar (MSME)?
Also, a dumb question, I'm going to open a current account under AU Small Bank and while applying there were two options, for business and for individuals, can I just select for individuals and need not to have any business registration and yet represent myself as a proprietor and take benefits of section 44ADA to save 50% on taxes?
(For context: I'm a video editor and having an income from overseas)
Shop and establishment or Udhyog Aadhar (MSME)?
Also, a dumb question, I'm going to open a current account under AU Small Bank and while applying there were two options, for business and for individuals, can I just select for individuals and need not to have any business registration and yet represent myself as a proprietor and take benefits of section 44ADA to save 50% on taxes?
(For context: I'm a video editor and having an income from overseas)
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