ITR guide for freelancers: Know the correct return form and filing process ahead of August 31 deadline

Which ITR form is meant for freelances?

• ITR-3: Applicable to freelancers maintaining regular books of account.
• ITR-4: Applicable to eligible professionals opting for the presumptive taxation scheme under Section 44ADA.

What if you have foreign income?

ITR-3 vs ITR-4 — what is the difference?

• Having income under the heads salary or pension.
• Income from house property, profits or gains of business or profession,
• Having income from capital gains.
• Income from other sources.
• Who is not eligible to file ITR-1, ITR-2 or ITR-4.

• Income not exceeding ₹50 Lakh during the financial year.
• Income from business and profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE.
• Long-term capital gain u/s 112A not exceeding ₹1.25 lakh.
• Income from salary or pension, one house property, agricultural income up to ₹5,000 in relevant said financial year.
• Other sources which include interest from savings account, deposit or income tax refund, and family pension, among others.

What documents should freelancers maintain?

• Invoices raised and payments received
• Bank account statements
• Form 26AS and Annual Information Statement (AIS)
• TDS certificates
• Books of account or accounting records