Income Tax Return Filing Tips for Freelancers

While tax slabs are same as for salaried employees, freelancers can't claim standard deduction of ₹50,000

- DIPAK MONDAL @ New Delhi

CONSULTANTS and freelancers face a slightly different set of rules while filing their income tax returns (ITR) compared to salaried employees. Here are some key points to ensure error-free and compliant filing.

Choosing the right ITR form Professionals earning consultancy or freelancing income are required to file ITR Form 3. Those opting for presumptive taxation scheme under Section 44ADA must file ITR Form 4 (Sugam). Under ITR 3, taxpayers must prepare a profit and loss account as well as a balance sheet. Filing an incorrect form can render the return defective or invalid.

ITR 4 can't be used where income exceeds ₹50 lakh, losses are carried forward, foreign-sourced income is reported, or taxpayer qualifies as a non-resident. In such cases, ITR 3 must be filed. For FY25, the deadline for filing ITR is September 15. If a tax audit under Section 44AB is applicable, the due date extends to October 31, with the audit report to be filed by September 30, 2025.