FIlling tax as freelancer

Hello everyone,

I need some help filling my taxes for previous FY and current FY
This is my first time filling taxes, I work as a freelancer offering IT services worldwide and have no salaried income here in India
I am receiving payments from individual clients and companies through PayPal & directly in my bank account
I have few questions,

1. Which ITR form should I file? ITR-1 or ITR-3? 
Some people are saying I can show it as income from other sources in ITR-1 while some are suggesting ITR-3 as it is a professional income

2. Other than PayPal, I receive money in my bank account through money transfer services like transferwise, worldremit etc In which section should I declare this income?

3. Do I need to register for GST in this case and issue any invoices to my clients? My current turnover is well below 20 lakhs

4. Do you suggest other payment methods for receiving money from overseas clients, if it makes filling taxes easier in future?

Any help will be appreciated

Thank You!

Replies (2)
Quick Summary
This discussion addresses the tax filing process for freelancers in India, particularly those earning from international clients via PayPal and bank transfers. Key questions revolve around selecting the correct Income Tax Return (ITR) form, specifically ITR-1, ITR-3, or ITR-4, considering professional income and potential eligibility for presumptive taxation under Section 44ADA. The thread also clarifies GST registration requirements based on turnover and explores alternative payment methods for easier future tax compliance.

You need to file your retof income for sure.
1. your category is professional.
2. you dont have to take gst bcz your turnover is under 20 lakhs.
3. if you show your net income after deduct of your expense which is 50% of your total turnover you can choose ITR 4 and show income under section 44ADA.
4. if you want to show your income below of that but above 8%, then you need to file itr 3 but not get audited and choose ITR 3
5. but if you show below 8 then get your accounts audited and choose ITR3
Originally posted by : Debiprasad Jana
You need to file your retof income for sure.1. your category is professional.2. you dont have to take gst bcz your turnover is under 20 lakhs.3. if you show your net income after deduct of your expense which is 50% of your total turnover you can choose ITR 4 and show income under section 44ADA.4. if you want to show your income below of that but above 8%, then you need to file itr 3 but not get audited and choose ITR 35. but if you show below 8 then get your accounts audited and choose ITR3

I checked ITR-4

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Instructions_ITR_4_AY_2019-20.pdf

https://prnt.sc/t357as

Please check point 'e' of Instruction 3 

It says you`re not eligible to use ITR-4 if you have income from outside India

Please clarify this if possible, thanks

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