ITR Filing 2025: Freelancers can claim deductions for expenses directly related to their work while filing income tax returns. These include internet bills, rent of co-working space, cost of software tools, professional fees, marketing and advertising costs and business-related travel expenses, etc.
ITR Filing 2025: These days it is the time to file income tax. Its last date is 15 September 2025. Earlier the last date was 31 July, which was later extended by the government. If you are a job holder then you can easily fill ITR, but if you have earned from freelancing (ITR For Freelancer), then you also have to file a return for it. You can file income tax return with the help of Form 16. The process of filing ITR for freelancers is different.
A freelancer or consultant cannot claim a standard deduction of Rs 50,000. The reason for this is that his salary is not income. However, he is allowed to claim deduction on certain expenses like business expenses. Here we are going to tell about the things that a freelancer or consultant should keep in mind while filing his income tax return.
Keep these things in mind while filing freelance returns
Talking to India Today, CA (Dr.) Suresh Surana said that freelancers should do some preparation while filing returns. So that they can avoid many types of mistakes. Freelancers should keep all the documents ready. Dr. Surana says that one should pay attention to his bank statement for the entire financial year. Freelancers should highlight their income credits. So that it can be known that this is your income. If your annual income is more than 25 lakhs, then according to the Income Tax Act, it is necessary to keep books of account. But even if your income is less, it will still be beneficial to keep a record of expenses and income.
If TDS is deducted, match Form 26AS
If a client has deducted TDS on your payment, then take Form 16B or TDS certificate from them. Then match it with 26AS and AIS (Annual Information Statement) to see if all tax deductions are visible correctly. If you have taken payment from foreign clients, then keep a record of bank advice slips, remittance details and foreign currency conversion rates, so that there is no problem in proving income later. If you have taken GST, then keep your GST returns and income figures ready. This must match the income given in ITR.
Exemption under Section 80C and 80D is required
If you want to take tax deduction on LIC, PPF, medical insurance or other investments, then collect their receipts and payment proof in advance. Let us tell you that freelancers can claim deduction for expenses directly related to their work while filing income tax return. These include internet bills, co-working space rent, cost of software tools, professional fees, marketing and advertising costs and business-related travel expenses, etc.
Which form should a freelancer fill?
If you do not choose Presumptive Taxation (Section 44ADA), then ITR-3 should be filled. In this, you will have to give details of both income and expenses. On the other hand, if you consider 50 percent of your income taxable under 44ADA, then you can fill ITR-4 (Sugam). There is no need to mention every expense in this.
