Income Tax Filing Mistakes Most Freelancers Make – And How to Avoid Them

ITR 197 views 3 replies

Growthlink Tax Filings

100 Points Joined July 2025

Body Content:

With more freelancers and gig workers rising in India, many still struggle with proper income tax filing.

At Growthlink Tax Filings, we've observed that most freelancers:

🔹 Don’t report full income from multiple clients/platforms
🔹 Ignore GST registration (if turnover exceeds ₹20L)
🔹 Miss out on deductions under 80C, 80D, 80GG
🔹 Don’t maintain digital invoices or proper bookkeeping
🔹 Fail to file ITR-3 or ITR-4 (instead file ITR-1, which is wrong)

This leads to notices from ITD, delayed refunds, and unnecessary penalties.

✅ Tip: Freelancers can opt for Presumptive Taxation under Sec 44ADA if income < ₹50L — and pay just 50% of gross as taxable income.

If you’re a freelancer or consultant, feel free to ask your ITR queries here — happy to help!

— Narasimha
www.growthlinktaxfilings.com

Replies (3)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9434 Points Joined December 2011

Freelancers with income less than 50 lakhs can opt for Presumptive Taxation under Sec 44ADA and pay tax on 50% of gross income.

Sanjit

not applicable

140 Points Joined September 2011

When you say "Freelancers with income less than 50 lakhs can opt for Presumptive Taxation under Sec 44ADA and pay tax on 50% of gross income"

Do you mean any freelancer in any profession (example college lecturing) or do you mean freelancers in professions specified in the Act such as interior decorators, technical consultants, Engineering, Accounting, Legal, Medical, Architecture, movie artistes etc