Last Updated:
ITR Filing: From ITR form to documents they need, let’s us know everything about ITR filing for freelancers, creators and gig workers.
ITR Filing for freelancer, gig worker and creators.
ITR Filing 2025-26: Though the deadline for the income tax return (ITR) filing for FY2025-26 has been extended to September 15, 2025, taxpayers are advised to complete their tax filing responsibility as soon as possible. It helps to avoid near-deadline rush and errors, which might occur in a hurry.
There’s a rising workforce in the country that includes freelancers, creators, and gig workers. They don’t come under a formal job structure, which means their tax filing process might be different from the formal tax filing process.
Freelancers, creators, and gig workers may face a challenge while filing the ITR. Thus, we asked experts to simplify the process, allowing them to understand things they should keep in mind. From ITR form to documents they need, let’s us know everything about ITR filing for freelancers, creators and gig workers.
Which ITR Form To Use?
According to CA (Dr.) Suresh Surana, freelancers generally need to file either ITR-3 or ITR-4, depending on their income and the tax scheme chosen. ITR-4 (Sugam) is applicable to those opting for the presumptive taxation scheme under Section 44ADA, typically with gross receipts up to Rs 3 crore (if cash transactions are under 5%). In this case, 50% of the income is presumed to be profit.
Gaurav Jain, Partner at Forvis Mazars India, adds that ITR-3 should be filed by those who wish to declare actual income after deducting expenses or whose receipts exceed the presumptive limit. It is also required for professionals who maintain books of accounts.
No Legal Definition, But Clear Tax Treatment
While the term “freelancer” or “gig worker” is not legally defined in the Income Tax Act, both experts confirm that the law recognizes their income under business or professional heads, depending on the nature of work.
Can Freelancers Claim Deductions?
Yes. Both experts confirm freelancers can claim expenses like laptop purchases, internet bills, travel costs, and software subscriptions, provided they are used wholly and exclusively for professional work. Assets like laptops qualify for depreciation, typically at 40%.
However, Surana warns that those opting for the presumptive scheme under Section 44ADA cannot claim individual deductions—50% of income is considered net taxable profit.
Documents You Must Keep
Freelancers must retain invoices, receipts, contracts, bank statements, and proof of asset purchases. Jain notes that even a basic income-expense spreadsheet helps, especially for those not under presumptive tax.
Freelancers and gig workers must maintain proper records to support the expenses they claim. These include:
- Invoices issued to clients.
- Bills and receipts for purchases or services used (e.g., laptops, internet, travel).
- Bank statements showing income received and payments made.
- Email confirmations, payment screenshots, and other digital proof.
- A summary of income and expenses maintained in a notebook or spreadsheet.
- Contracts or Agreements: Maintain client contracts, emails, or written agreements that specify the scope of work and payment terms. These documents validate that the income was earned through professional freelance services.
- Asset Purchase Records: For capital assets like laptops or office equipment, keep purchase invoices to accurately calculate depreciation. The invoice confirms both the cost and acquisition date, which are critical for tax computation.
-
Travel Records: Preserve tickets, boarding passes, hotel bills, and meeting confirmations for business-related travel. Only expenses with a clear work-related purpose are eligible for deductions and as such personal or family trips do not qualify.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
- First Published:
Source: ITR Filing For Freelancers & Gig Workers: Which Form To Use, What To Claim, And Docs To
