Indian Tax Payers

[nandees]

Hi there, I need some advice related to paying tax (in India) on the money I earned by freelancing. I have referred to several CA's and service tax lawyers but they all tell different things. Is there any one who has given tax on their freelance income, then please share your experience. 

[sbilu131521]

Dear Nandeesh,

I have faced the same issue once. But finally, from last 3 years, I manage to pay tax in the proper way. I am not very sure about the technicality yet. But my CA is a good one and he said that our type of work is counted as "Service provider" and he filled the Form ITR 4.

You may pass this information to your CA or if you want I can give my CA's contact too. He id from Mumbai.

Thanks

Sagar

[piyushseem]

Its very simple thing that if you are getting money into your bank account and if it is under indian tax panel... you should fill ITR as per rule, else it will 101% trouble for you.

If you are asking to fill GST than you need to look into your income first, because if it is less than 20 Lakh per year, than no need to worry (I mean you do not need to register for GST number).

I hope it will help you...

[e58c8405]

Hello Nandeesh,

I'm sure that your issue is resolved by the time I'm writing this, however I'll still put an asnwer so that someone else, who has similar queries may find it helpful. I'm a qualified Chartered Accountant with more than 8 years of experience and is elegible to give my opinion in this matter.

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Most of the freelancers working on upwork are elegible for Section 44ADA (Presumptive Tax Scheme for Professionals). 

This section is applicable to Professionals mentioned under Section 44AA, whose total gross receipts are less than Rs 50 lakh in a year are the eligible beneficiaries.

Professionals mentioned under Section 44AA includes:

• Interior decorations
• Technical consulting
• Engineering
• Accounting
• Legal
• Medical
• Architecture
• Other professionals, as mentioned below:

                 a. Movie artists includes a producer, editor, actor, director, music director, art director, dance director, cameraman, singer, lyricist, story writer, screenplay or dialogue writer and costume designers.

                 b. Authorised representative means a person who represents another person for a fee before a tribunal or any authority constituted under any law. It does not include an employee of the person so represented or a person who is carrying on the profession of accountancy.

What is presumptive income?

If any service provider falls under any of the category as mentioned above, thay are eligible to get a rebate of 50% of their total receipts and pay tax as per the slabs applicable on 50% income only. However you will not be allowed to claim any other expense against your income.

Other Benefits

You shall not be required to maintain your books of accounts and not required to undergo any audit.

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In case your total receipts exceed INR 50 lakhs, then you are not elegible to claim benefit under section 44ADA and must maintain proper books and claim actual expenses. 

I hope this was helpful, in case if you have more doubts, you can send me a DM here. Thanks!

[nis_123]

Hi Shubham , 

I had a doubt about whether i can avail section44ada or not. I am working on upwork and my job role is about Managed the orders in backend. As per my form 16 from upwork , it says tds was deducted in section 194O which is not for professionals . Could you please help to suggest whether i am eligible for section 44ADA or not ? 

Is upwork deducts TDS in section 194O only irrespective of the professional services one is providing ?