Regd. itr and other things.

Hi,

I am a Freelance Admin assistant doing online jobs at home at websites like freelancer.com etc. This year my income will be around 2.5 lacs and I have to file ITR. I will be filing ITR first time after few years that's why I need to clear few things:

1. Which ITR form I need to fill up online? Do I also need digital signature?

2. My main expense to perform these jobs is Internet bill, Can I deduct this amount from total income so the tax will be calculated on income - expenses = net income?

Any help is appreciated.

Thanks

RJ