Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Does freelance money earned come under tax apart from salary?
11 Answers
- 2 years ago
As per the Income Tax Act, income from such a profession will be taxable under the head ‘Profits and Gains of Business and Profession’.The income earned by a freelancer is also taxable under the same head.
For the purpose of taxation, freelancers have been divided into two categories.
Category 1 - Specified Professionals
Category 2 - Others.
Firstly, in case of a salaried person, TDS shall be deducted by his employer every month automatically so the requirement of payment of advance tax gets dispensed in their case.Whereas in case of freelancing, one has the responsibility to deposit advance tax during the year if his taxes during the year if the amount of tax exceeds Rs. 10,000
Secondly, a salaried person gets Form 16 from his employer covering all income, deduction etc. This facilitates a lot to him while filing his return.Whereas for a freelancer he himself has to jot down all his incomes and expenses during the year and take care of the taxes.
- SANTOSH KUMARLv 62 years ago
Freelancing income is taxable under Income Tax Act 1961 but it is not part of Salary. It is pure business income and necessary expenses can be claimed as per provision of law.
- GatlinLv 43 years ago
You need to add freelance income to salary and file returns for the total amount.
- How do you think about the answers? You can sign in to vote the answer.
- 3 years ago
Yes. It is also an Income. You have to declare both salary and freelance income in your tax returns.