How to compute taxes for a freelancer?

Shashi
Jun 21, 2019
Hi I'm a Freelancer and also registered as Sole Proprietorship, I work on Freelancer.com and 98% of my clients are from outside of India last year my gross total earning was 10 lakh rupees. Do I need to pay any taxes?
2 Answers
Jun 21, 2019

Note: This question is best answered by a tax expert or CA.

If you are a resident of India, then  your income earned is taxable. There are specific exceptions to this.  The information you provided does not indicate any possible exceptions for you.

Again, this is best answered by a tax expert. I am not qualified to provide tax advice.

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Jun 21, 2019

I have worked as a freelancer before and eligible to answer this one. I filed my return under section 44 ADA using form number ITR4S. Section 44ADA is available only for certain professions. Please see this answer that I posted on Quora Subodh Malgonde's answer to How, when and which taxes to pay in India as freelancers?

The tax will depend on how you calculate your taxable income. This will depend on which income tax return form you choose to file under - ITR 1, ITR 2, ITR 4S etc. It will also depend on if you have any other income (rent, capital gains, salary etc).

As a freelancer you may be eligible to file a return under section 44ADA. With Rs 10 lakhs of annual income and section 44 ADA (return has to be filed under ITR 4S) then you may have to pay very little or no tax. However I am not sure if a sole proprietorship is eligible to file return under section 44ADA. It is best to consult a CA.


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