New delhi: With the fast-road digital world, more people are choosing to freelance. Several are working in areas like video editing, content written, graphic design, coding, and digital marketing. But when it comes to filing taxes, many freelancers are unsure which itr form to use, what tax slabs they fall into, and which sections they can use for tax deductions. This guide gives you all the details needed to file your itr properly.

Which itr form should you use?

It’s important to know which itr form is best for you as a freelancer.

ITR-3: This is for people who earn income from freelancing, capital gains, or other business income.

ITR-4 (SUGAM): This is for freelancers who want to file taxes under the presumptive taxation scheme (Section 44ADA) For Professional or Business Income.

ITR-1 or ITR-2: these are for salaryed employees or that with income mainly from investments.

Freelancers Should Choose ITR-3 or ITR-4 INTEAD of these forms.

What are tax slabs?

Freelancers have the same tax slabs as regular taxpayers.
You can choose between the old or new tax regime.

Old tax regime (2024-25)

– Up to ₹ 2.5 Lakh: No tax
– ₹ 2.5 Lakh to ₹ 5 Lakh: 5%
– ₹ 5 Lakh to ₹ 10 Lakh: 20%
– Above ₹ 10 Lakh: 30%

New tax regime

– Up to ₹ 3 Lakh: Special discount
– ₹ 3 Lakh to ₹ 6 Lakh: 5%
– ₹ 6 Lakh to ₹ 9 Lakh: 10%
– ₹ 9 Lakh to ₹ 12 Lakh: 15%
– ₹ 12 lakh to ₹ 15 lakh: 20%
– Above ₹ 15 Lakh: 30%

How to File ITR?

Step 1: Calculate your total income for the year (April 1 to March 31), Including Fees and Payments from Clients.

Step 2: Keep Track of Your Expenses, Like Laptop, Internet, Travel, and Phone Bills, and Check the deductions you can class.

Step 3: Go to www.incometax. Gov. in and fill out the online itr form.
Step 4: Verify your form using aadhaar otp or another method.

Step 5: Download and save the e-copy of the form you filed.

Which tax sections can you use?

Section 80D: You can deduct medical insurance premiums from your taxable income.

Section 80E: You can claim a deduction for interest paid on education loans.

Section 80EEA: First-time homebuyers can get a discount on home loan interest.

Section 80G: Donations to Religious or Charitable Institutions are Tax-Exempt.

Section 80u: People with disabilitys are eligible for special tax benefits.

Freelancers should treat itr filing carefully. Choosing the right form, accurately calculating your income and expenses, and using all possible deductions can help you reduce your tax burden.