Tax query for a freelancer

625 views 9 replies

Hi All,

Apart from salary income, I also earn some money by working as a freelancer. I have two questions regarding that - 

1. How much TDS is my client supposed to deduct where I work as freelancer ?

2. For work done in Jan-March'15, I'll be paid in April'15. In which FY will this income be added to my taxable income ?

 

Regards,

 

Replies (9)

1. If it is professional consultancy, TDS @ 10% (provided the total amount exceeds 30000 in a year)

2. Income is taxable on the date when it is accrued or receipt, whichever earlier. So in this case, it will be taxable in FY15 for work done b/w Jan-Mar 15.

Thanks Poornima. For #1, I work as an individual consultant. How much tax needs to be deducted ?

Regards,

10% TDS is deductible

Thanks Poornima. My client's company was setup only 6 month before and they don't have a TAN. Can they still deduct the tax ?

Tell them to apply for tan n deduct TDS. If Deductor is individual or huf, then exemption is available provided tax audit is not applicable

It's a propreitership. Is it treated same as individual ?

Yes, then if tax audit is not applicable, then no need to deduct TDS

I am impressed by your candid, quick and knowledgeable response.

My father worked as an employee til 14th Feb 2015 and since then as Consultant/Advisor for the same company. They have deduced still 10% TDS. His income falls in 30% tax bracket. 

For this year assessment and coming years, how shall we legally and technically show our expenses which can be exempt from taxable income for a Consultant/Advisor/Freelancer.

Your guidance will help in this regard very much. Also what corresponding documents apart from the bills, transaction slips are required for documentation/record keeping purpose.

Please advise.

Thanks & Regards,

Vinay

Thanks. If amount paid/payable during a FY exceeds ₹30,000, TDS @ 10% will be deducted by the payer. You can adjust this at the time of filing ITR.

You can show all related expenditure for consultancy, to name a few telephone, mobile phone, broadband, conveyance, travel etc. Any legitimate expense related to consultancy is deductible. You need to keep the bills/vouchers etc for the expenses that you show as incurred, for record purposes. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details