File income tax and deductions

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This query is : Resolved

Aditya Agarwal (Querist)

25 April 2012 Hi All,
I am a freelancer and I work from my home since January 2011. My income gets credited to my bank account.
I have not paid income tax before. but now I want to pay tax starting January 2011.
So i want to inquire about how to file my income tax.
What are the deductions that I can avail?

more info about me.
I am leaving in a rented house. Also have LIC. I am paying huge amount by way of internet, electricity etc and also sometimes pay other persons for some job.

So please guide me in this regard.
I shall be very thankful to you.

CA Priyanka Bhatia

CA Priyanka Bhatia (Expert)

26 April 2012 Dear Aditya,
The amount credited to your account from freelancing would be taken as your receipts taxable under the head 'Profits and gains from Business and Profession'.
In this, you can claim expenses incurred by you like rent, electricity, internet and also the amount paid to others for getting job done. Balance amount would be your net income taxable at slab rate, if you are in proprietorship.

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Aditya Agarwal

Aditya Agarwal (Querist)

26 April 2012 Thanks Priyanka,
So this would not be considered as salaried income?
How I can file ITR?
Regarding deductions, what documents I need to submit.
I don't have any documents regarding what I pay others, not even any kinda receipt for rented premise. However I have phone, electricity bills.
Also Payment to LIC will be considered as deductions.

Thanks Again

CA Priyanka Bhatia

CA Priyanka Bhatia (Expert)

26 April 2012 Dear Aditya,
To consider income as salary, there must be employer-employee relationship. In your case, it seems that you may be doing work for many people.
You can file ITR online or manually. No documents need to be submitted while filling the return. But, you should have these documents in case Income tax Officer ask for the same in future.
The expenses for which you don't have any documents, then any other document like bank statement if you are making payment by cheque or signed receipt from the payee affixing revenue stamp can also work.
Yes you can claim deduction of LIC premium u/s 80C.

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