File Income tax return for Freelancers online
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Freelancers in India are treated as self-employed individuals under income tax laws. Unlike salaried employees, there is no employer deducting TDS or issuing Form 16. You are responsible for reporting your income, claiming eligible expenses and paying advance tax on time. Whether you are a graphic designer, content writer, developer, digital marketer or any other independent professional, you must file your Income Tax Return if your total income exceeds the basic exemption limit.
Latest updates
- ITR filing Due date for FY 2024-25 (2025-26) has been extended from 31st July 2025 to 15th September 2025
Who is a Freelancer?
A freelancer is essentially a self-employed individual who offers services to clients or businesses without being employed on a long-term contract basis. Instead of working for a single employer, freelancers work independently, often on a project-by-project basis or for multiple clients simultaneously.
Types of Freelancers:
Creative Professionals: This includes writers, designers, photographers, artists, musicians, and other creative individuals who offer their artistic talents and services to clients.
Consultants: Consultants provide expert advice and guidance in specific areas such as business, marketing, finance, technology or human resources.
Programmers and Developers: Freelance programmers and developers offer their skills in coding, software development, web development, and app development to businesses and individuals.
Virtual Assistants: Virtual assistants provide administrative, clerical or creative support to clients remotely. Tasks may include email management, scheduling, social media management and more.
Freelance Professionals in Various Fields: This includes freelancers in fields such as accounting, legal services, healthcare, education and engineering, among others.
Income tax on freelancers
Freelancers are taxed under the head “Profits and Gains of Business or Profession” in India. Their total income includes all payments received for freelance work, whether from Indian or foreign clients. They can claim deductions for expenses directly related to their work like internet bills, software subscriptions, rent for office space, travel costs and professional fees.
Freelancers with gross receipts up to 50 lakh rupees can opt for the presumptive taxation scheme under Section 44ADA, where 50 percent of the receipts are considered as income and taxed accordingly. If they do not opt for presumptive tax, they must maintain books of accounts and report actual income after deducting expenses.
Freelancers are also required to pay advance tax if their total tax liability exceeds Rs. 10,000 in a financial year. Additionally, if TDS has been deducted by clients under Section 194J, it must be adjusted while filing the return.
What are Deductions and exemptions available to Freelancers?
Rent paid for office or coworking space
Internet and phone bills used for freelance work
Depreciation on laptops, printers and other work-related equipment
Software subscription and online tools
Electricity and utility bills for home office
Travel expenses for client meetings or assignments
Professional fees paid to CA, legal consultants, etc
Office supplies like stationery and printer ink
Marketing and advertisement expenses
Domain, hosting and website maintenance costs
Courses or training fees related to skill development
Health insurance premium under Section 80D
Investments in PPF, ELSS, LIC, etc under Section 80C upto Rs. 1.50 lakhs
Donations to approved institutions under Section 80G
Interest on education loan under Section 80E
Home loan interest under Section 24(b), if applicable
Income tax slab rates for freelancers
Old tax Regime
| Income | Tax rates |
| Upto ₹ 2.50 lakh | 0% |
| ₹ 2.50 lakh – ₹ 5 lakh | 5% |
| ₹ 5 lakh – ₹ 10 lakh | 20% |
| Above ₹ 10 lakh | 30% |
You Can claim deduction under Section 80C, 80D, 80G, etc
For senior citizen (age between 60 & 80 years), tax rate is 0% upto ₹ 3 lakhs. Rest of the rates are same.
For super senior citizen (age above 80 years), tax rate is 0% upto ₹ 5 lakhs. Rest of the rates are same.
In Old tax regime, a maximum tax rebate under section 87A of Rs. 12,500 is available for income upto Rs. 5 lakhs meaning your income is totally tax free till Rs. 5 lakhs. The rebate under section 87A is not allowed to a Non-resident.
New tax Regime (FY 23-24)
| Income | Tax rates |
| Upto ₹ 3 lakh | 0% |
| ₹ 3 lakh – ₹ 6 lakh | 5% |
| ₹ 6 lakh – ₹ 9 lakh | 10% |
| ₹ 9 lakh – ₹ 12 lakh | 15% |
| ₹ 12 lakh – ₹ 15 lakh | 20% |
| More than ₹ 15 lakh | 30% |
New tax Regime (FY 24-25)
Income | Tax Rate |
Upto ₹ 3 lakh | 0% |
₹ 3 lakh – ₹ 7 lakh | 5% |
₹ 7 lakh – ₹ 10 lakh | 10% |
₹ 10 lakh – ₹ 12 lakh | 15% |
₹ 12 lakh – ₹ 15 lakh | 20% |
Above ₹ 15 lakh | 30% |
New tax Regime (FY 25-26)
| Income Range (₹) | Tax Rate |
|---|---|
| Upto ₹ 4 lakh | Nil |
| ₹ 4 lakh – ₹ 8 lakh | 5% |
| ₹ 8 lakh – ₹ 12 lakh | 10% |
| ₹ 12 lakh – ₹ 16 lakh | 15% |
| ₹ 20 lakh – ₹ 20 lakh | 20% |
| ₹ 20 lakh – ₹ 24 lakh | 25% |
| Above ₹ 24 lakh | 30% |
What is the TDS applicable for Freelancers?
Freelancers are generally subject to TDS under Section 194J, which applies to professional and technical services. Clients are required to deduct 10% TDS on payments made to freelancers if the total amount paid during the financial year exceeds Rs. 30,000 (Rs. 50,000 from FY 25-26 onwards). However, if the freelancer fails to provide a valid PAN, the TDS rate increases to 20%. The deducted TDS is reflected in Form 26AS and can be claimed as credit while filing the income tax return. If the total TDS deducted is more than the actual tax liability, the freelancer can claim a refund.
Which ITR form is applicable for freelancers?
Freelancers are generally required to file ITR-3 if they maintain books of accounts and declare actual profits from their profession. However, if a freelancer opts for the presumptive taxation scheme under Section 44ADA, they can file ITR-4. ITR-4 is applicable only if the total income does not exceed Rs. 50 lakh and the freelancer is not required to maintain detailed books of accounts. Choosing the correct ITR form depends on the type of income, total turnover and whether deductions and actual expenses are being claimed.
Benefits of ITR Filing for Freelancers
- Helps prevent late fees and interest by filing within the due date
- Required for obtaining personal, home or business loans and insurance policies
- Acts as valid proof of income for visa applications and government tenders
- Enables carry forward of business or capital losses to future years
- Allows claiming TDS refunds deducted by clients
- Avoids interest and penalties for non-compliance
- Builds financial credibility over time
- Ensures smooth income tax scrutiny or assessment if any
How to file income tax return for freelancers?
Login to the portal
Visit www.incometax.gov.in/iec/foportal/, click on Login, and enter your PAN and password.Select File Income Tax Return
From the dashboard, click on e-File > Income Tax Return > File Income Tax Return.Assessment Year and Filing Type
Choose the appropriate Assessment Year (example, AY 2025-26 for FY 2024-25), select Online mode and click Continue.Choose Status
Select your status as Individual and proceed.Select ITR Form
Prefill and Validate Details
Review prefilled personal information, bank details, and TDS/TCS data. Verify and correct if needed.Income Details
Under “Income from Business or Profession,” enter:Gross receipts or turnover
Nature of profession
If under Section 44ADA, declare 50% or more as income
If actuals, report income and expenses separately in Profit & Loss A/c
Other Income
Add income like interest from savings, FD, capital gains if any.Claim Deductions
Enter deductions under Section 80C, 80D, 80G, etc., as applicable.Tax Summary
Check total tax liability, advance tax paid and TDS already deducted. Pay any remaining tax using the portal’s payment gateway if required.Preview and Submit
Validate all sections. Preview the return and click Submit.e-Verify ITR
Complete verification using Aadhaar OTP, net banking or EVC. ITR filing is complete only after verification.Download ITR-V
After successful verification, download the ITR-V acknowledgement for your records.
Due date of ITR filing for Freelancers
The Due date to file Income tax return for FY 2024-2025 (AY 2025-2026) is 31st July,2025 which is extended to 15 th September, 2025.
In case you miss this deadline then you can file belated ITR till 31st December, 2025 with late fees.
Also for any mistake made while filing ITR before due date, you can make corrections by filing Revised ITR any number of times till 31st December, 2025
If you miss deadline of Belated income tax return filing then you can file Updated ITR (ITR U) till 4 years from the end of relevant assessment year with late fees and additional taxes.
What happens if ITR is not filed?
Penalty under Section 234F for late filing
Inability to claim TDS refund
Losses cannot be carried forward
May receive income tax notice or scrutiny
No legal proof of income for loans or visas
Missed opportunity to correct errors through revised return
Risk of prosecution in case of willful default
Trouble in government or professional registrations
Looking for help?
At A R Dhorajiya & Co., we specialize in income tax return filing for freelancers. From choosing the right ITR form to optimizing deductions under Section 44ADA, we ensure complete compliance with minimal effort on your part.
Contact us today at +91 9769647582 for a consultation or to get started with your ITR filing
Frequently Asked Questions
You need to report your freelance income under “Profits and Gains from Business or Profession” in the ITR form and pay tax after claiming eligible expenses and deductions. File the return online via the income tax portal.
TDS is deducted at 10% under Section 194J if the payment exceeds Rs. 30,000 per invoice in a financial year (Rs. 50,000 from FY 25-26 onwards). If PAN is not provided, 20% is deducted.
Yes, if your services cross the GST threshold (currently Rs. 20 lakh or Rs. 10 lakh in special category states), GST registration is required. Income tax is separate and based on total annual income.
Form 26AS is a consolidated annual tax statement that shows all TDS deducted, tax paid and other tax related information. Freelancers should review it before filing ITR.
Form 16A is a TDS certificate issued by clients when they deduct TDS under Section 194J. It shows the amount paid and tax deducted.
Freelance income is tax free up to Rs. 5 lakhs in old tax regime, Rs 7 lakhs in new tax regime (till FY 24-25) and Rs. 12 lakhs in new tax regime from FY 25-26 onwards.
Clients are required to deduct TDS if payments exceed Rs. 30,000 per invoice in a financial year (This limit is increased to Rs. 50,000 from FY 25-26 onwards). Freelancers themselves do not deduct TDS but can adjust the TDS deducted by clients while filing ITR with the tax liability.
No, Form 16 is only for salaried employees. Freelancers receive Form 16A from clients who deduct TDS.
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