Freelancers need to submit the ITR-3 or ITR-4 form to file their returns. The ITR-3 form is meant for income derived from business or profession. For income that is calculated on a presumptive basis, the ITR-4 is applicable.
Steps To File ITR For Freelancers
1. First, you need to calculate the gross income for the entirety of the financial year.
2. Then you need to estimate the deductions and expenses that you can claim in the financial year.
3. Now you need to select the appropriate form for filing the tax returns. You can choose from ITR-3 and ITR-4 for filing the returns.
To conclude, freelancers must develop a thorough understanding of how the Income Tax Act, 1961, applies to their income. By properly calculating the deductions and selecting the right form for filing their returns, they can ensure that the process remains hassle-free.
Source: ITR Filing: Quick Guide For Freelancers To File Income Tax Return
