Income tax for a fresh freelancer

Hi,

- Until August 2018, you received salary and TDS was deducted on such salary therefore no need to worry for payment of taxes at the time of filing of ITR in the m/o July 19.

- From sep.2018, you received consultancy charges against which you raised invoices to overseas clients. This income falls into definition of Income from profession. Under Income tax, either you should pay advance tax on estimated basis or pay income tax in the form of self assessment tax alongwith the interest for non-payment of advance tax at the time of filing of ITR. You can file ITR-4 i.e. presumptive tax and should both salary income and income from profession. For professional income, as the income is less than Rs. 50 lacs, you need to pay tax on atleast Rs.5 lacs (i.e. 50% of 10 lacs).

- Under GST, you need to register and obtain LUT. In GST, your services are termed as export of services and to export without payment of taxes, you need to obtain letter of undertaking.

Thanks

Yes you can easily go for 44ADA and show around 50% of total receipt of freelancing receipts as your income plus your salary income and calculate tax on same and since you are going to select presumptive income section you can pay advance tax till march without any interest and since you are saying you have total receipt less than 10 lakh I am assuming you will have to pay some advance tax so do calculate that.

Also to be safe under 44ADA do show some withdrawal in your bank account to claim them as expense.

If you need any help in filing ITR you can contact me from here or over mail and we shall provide you the service.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

For that you first need to calculate your total income for the year and then calculate tax as per the income tax slabs and from that tax liability reduce the TDS amount deducted on your salary if that amount comes more than 10000 you need to pay advance tax by march.

If you need any help you can contact me to calculate your advance tax as well as filing return of income.

Thank you

You wrongly put A.Y. 2018-19. It should be A.Y. 2019-20. Calculation is based on your total income earned by you. You need to pay it online.

Hi,

You are correct in showing freelancing income under section 44Aada. you will have to show salary income under salary head and dreelancfre income under the head income from business/ profession. 

Hi,

Advance tax will be for AY 2019-20 (i.e. FY 2018-19). You will have to compute tax on both your income till March 2019 by estimating the income of next two months.

You will have to pay advance tax by 15 March 2019 on the website of TIN-NSDL. You can simply type on Google "pay my advance tax".

The income earned by you from salary should be offered to tax as salary income whereas freelancing income should be offered as business income.  Since, taxes are deducted on salary income, you need to pay advance tax on freelancing income. 

Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax. These payments have to be made in installments as per due dates provided by the income tax department. For payment of advance tax, you need to prepare your total computation of income as to be done for filing return of income.  Thereafter you reduce TDS from the tax liability and deposit the balance tax payable.  The due dates are

Due Date

Advance Tax Payable

On or before 15th June

15% of advance tax

On or before 15th September

45% of advance tax

On or before 15th December

75% of advance tax

On or before 15th March

100% of advance tax

Also, make your annual investments to claim 80C benefits. Advance tax payment is made using Challan 280 just like any other regular income tax payment into government treasury.  Sine, you have not paid any installment, do make the payments asap to reduce the interest liability. 

Hi,

Hope you are doing well !!

Yes, your understanding is correct.

You need to show salary income in Income from salary head and freelancer income in income from business & profession head.

Hi,

You need to pay the advance tax online.Advance tax payment is made using Challan 280 just like any other regular tax payment

Due Dates of Payment of Advance Tax for FY 2018-19

 Dates

For Individuals

On or before 15th June 2019

Up to 15% tax

On or before 15th September 2019 

Up to 45% of tax

On or before 15th December 2019

Up to 75% of tax

On or before 15th March 2019

Up to 100% of tax

In other words, if you pay your advance tax by 31st March of the relevant financial year, you will not be liable to pay interest.

Hi

For Advance Tax payment ,visit tin-nsdl website and pay e-tax there. Challan no 280 is for advance tax.

You can also visit bank branches for the same.

For calculation of Advance tax,Make a calculation of your estimated earnings for the year and calculate tax on that amount .IF tax amounts is more than Rs 10000 than you are liable to pay Advance tax.

It is to be paid in installments.

Hope it helps