ITR TYPE 500 Freelancer Income

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This query is : Resolved

Quick Summary

If you have income from salaried employment, intraday trading, F&O, and short-term investments, you'll likely need to file ITR-2. However, if you also have minor freelance income (even just Rs 500), this can be taxed under 'Profits and Business or Profession'. Depending on your trading profits and turnover, you might need to consider ITR-3 or ITR-4 instead of ITR-2.

Jatin Sachdeva

Jatin Sachdeva (Querist)

29 May 2022 Hi,
I'm a salaried person. I also do intraday, F&O and short term investment.
I will file ITR for the first time.
As per the online resources, I should file ITR 2 for the above cases.
But I also did a bit of freelancing (not continuing now) and income from it was just 500 rs.
So please tell how and where can I adjust this income. Or I will have to go for ITR 3.

Saurabh Anokhchand Jain

Saurabh Anokhchand Jain (Expert)

29 May 2022 Income as a Freelancer (consultant) is taxed under the head “Profits and Business or Profession".

Freelancers and consultants need to fill out and submit either ITR-3 or ITR-4.

ITR-3 applies to income from business or profession. A freelancer can opt for presumptive taxation and declare 50% of their gross receipts as their income by filing ITR-4.

Nikhil Kaushik

Nikhil Kaushik (Expert)

30 May 2022 Given that your freelancing income is just Rs 500, better ignore that for a minute and focus on intraday & F&O activities for the purpose of determining which return form to use.

In case you have Loss or profit from these activities that is less than 6% of cumulative turnover, please file ITR-3. Else, you may file ITR-4.

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