Freelance tds ?

1402 views 9 replies

I have recently started providing software(IT) related services to a small firm which pays me on  hourly basis. My work is mostly from home. I have found out that such work may be tagged under 'professional' 'freelance' or 'commision' which has a limit of Rs.30000 that will attract tax-10.% thereafter in the form of TDS .

I dont understand. If 30000-50000 is the only income I receive throughout the year with no other income then am I not eligible to receive any kind of rebate? I live in a rented house, use my resources and have a LIC policy. Cant these be used to receive rebates or deductions to avoid the tax.?

Is there any other way out?

I am greatful for any answers.

 

Replies (9)

Dear EVU.

 

TDS will be applicable for u under sec 194(J) and this amount will refund to you if u fille ITR Return.

 

 

Originally posted by : Santhosh Kumar N

Dear EVU.

 

TDS will be applicable for u under sec 194(J) and this amount will refund to you if u fille ITR Return.

 

 

Originally posted by : Santhosh Kumar N

Dear EVU.

 

TDS will be applicable for u under sec 194(J) and this amount will refund to you if u fille ITR Return.

 

 

AGREED.

Thanks to all who have replied to my query. That is a real relief to me. There's just one more thing I would like to know.

1. Which ITR form do I need to file

2. What document would I need to acquire from my employer (or client) in order to file to ITR (for eg., Form 16)

Thanks once again.

i think you need to file itr- 4 becse you may be considered as a sole proprietor.

 

there is no employee n employer relationship ryt?? you need to get form 16A certificate from your client. you dont need to submit form 16A but you have to get it from your client . itr-1 is salaried people, itr-2  n itr-3 is not for u so itr-4 for u i think

Mr. EVU,

The concept of TDS has got nothing to do with your income / Loss during that year. It is an obligation that the amount paying company has.

 

1st you file your itr4 and show your lic receipt you will get benifit

Dear Evu,

 

To sum up, you have to do the following things:

1.  Make sure you get Form 16A from the company.  In the meanwhile,n case you already haven't done it, create account on https://incometaxindiaefiling.gov.in/  From here you can track the TDS deducted from the payments made to you.

2.  To claim exemption under section 80C for LIC premium, please keep the copy of the premium receipt in your permanent records.

3.  Keep a record of all the expenses incurred by you for providing services to this company.  It may include : proportion of electricity bill and telephone bill (that can be reasonably attributable to the services provided); traveling bills if any; in case you are living in a rented accomodation, portion of rent (if it can be demonstrated that you have used a part of the house for providing these services). 

4.  File your tax return in time.  Use ITR4 for the same.

Precautions:  Depending upon the place you live, check whether you are obligated to pay professional tax.

In case you need any other help, please feel free to ask.

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