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Regarding Freelancer software developer

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Abhishek

software professional

33 Points Posted on 03 February 2020

Hi ,

I worked for 3-4 years as software freeelancer and paid taxes under 44ADA.

1. In 44ADA 50% of the income can directly tax exempted. e.g. if the income is 30 Lakh, 15 Lakh can be directly exempted.

Now, I paid house rent during this period of 3-4 years. Can I deduct the rent amount from the remaining 15Lakh on which tax is applicable. Which means, Should I pay tax on total 12.5 Lakhs of income if I have been paying rent of Rs. 20 thousand per month

If so, Should I go ahead and claim for refund as I have already paid the taxes for previous years.

2. The reason,I took the house on rent was basically due to the fact , there were law and order problems around my own house. I reported the problems to govt authorities through official channnels, However, the problem was never really resolved. Can I claim any further tax exemption based on these points or does this point atleast ensure I claim the house rent as expense as per point number 1.

Best Regards

Abhishek

Replies (3)

Quick Summary

A freelance software developer, having paid taxes under Section 44ADA for 3-4 years, is inquiring about deducting house rent paid from their taxable income. They want to know if rent expenses can be claimed against the remaining 50% of income after the initial 50% exemption under 44ADA. Additionally, they are asking if specific circumstances, like law and order issues necessitating a rented accommodation, allow for further tax exemptions or support the claim for rent as an expense.