Freelancer Current account

No — under income tax law (Section 44ADA) in India, if you are a freelancer/professional with annual gross receipts below the prescribed threshold (₹50 lakh/₹75 lakh if cash receipts are ≤5%), you are not legally required to maintain detailed books of account or get them audited just because of tax compliance under 44ADA. That means there’s no statutory requirement to have a current account solely for 44ADA compliance if your gross receipts are below the limit.

Thanks for your reply Sir. A person working at the bank said that savings account is only to be used for personal expenses and suggested for a current account 

No. Section 44ADA does not require a freelancer to maintain a current account, and gross receipts below ₹15 lakh do not create such a requirement. You may use a savings account if your bank permits it for business receipts; check the account’s terms, since banks may restrict regular commercial use of savings accounts. Keep clear records of client receipts and expenses for tax purposes.

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