ITR for Freelancers & Professionals

Freelancers can claim office rent, internet/phone bills, software subscriptions, equipment depreciation, travel expenses, professional development costs, marketing expenses, and other expenses wholly for business purposes. Under presumptive (44ADA), no expense claims are needed.

44ADA is beneficial if your actual profit margin is above 50% — you declare only 50% as income and save on compliance. If your actual margin is below 50% (high expenses), regular ITR-3 may save more tax. Our CA analyzes your specific situation.

When clients deduct TDS (usually 10% under section 194J), it appears in your Form 26AS. This TDS is credited against your final tax liability. If total TDS exceeds your tax, you get a refund. We reconcile all TDS to ensure proper credit.

Under regular filing (ITR-3), freelancers should maintain income and expense records. Under presumptive (ITR-4/44ADA), detailed books are not required — you simply declare 50% of gross receipts. However, basic records of income and bank transactions are recommended.

If you are registered under GST and have filed returns, the GST component is not part of your income. However, GST paid on business expenses that is not claimable as input credit can be treated as a business expense for income tax purposes.

Freelancers filing ITR-3 or ITR-4 have a due date of August 31, 2026 for FY 2025-26 (AY 2026-27) if no tax audit applies. If audit is required, the due date is October 31, 2026. A belated return can be filed until December 31, 2026.