banner_ad

Tax saving option for freelancers

Tax planning 1134 views 8 replies

Hi,

     I am working as a freelancer for a start-up. My invoice has both project fee and GST (18%) mentioned. I collect both of them and pay back GST every month. Need clarifications on the below:

  1. Should I calculate my gross total income is (Total payment - GST) ?
  2. My Gross total income from the company is expected to be ~48 lakhs. So can someone please suggest better options to save Income Tax?
    1. Subtract business related from expenses(Salary, rent, travel, etc.,) from the Gross total income and estimate the taxable income.
    2. I heard that there is an option to declare only 50% of Gross total income as taxable income. Am I eligible for this?
    3. Should I estimate both of the above and choose one of them. Or Is it possible to avail both the above - business expenses deduction and 50% exemption benefit?

Thanks in advance.

Thanks

Mani

 

Replies (8)
  1. Yes, correct.
  2.  i. Yes, under normal assessment.  ii. Eligible if you are eligible for sec. 44ADA IT act.  iii. You can be eligible for either of the options.

Thank you sir for quick response. Also I welcome your suggestions for better tax saving options , if you have any.

Sec. 44ADA, if eligible, is the best option by declaring minimum 50% gross earning as profit. Other deductions ;ike 80C, 80D etc. are common under old regime. Under new regime no such deductions allowed.

Thank you very much sir for your quick responses.

You are welcome.           

Sir, 

    One more question. I am getting my entire project fee through Online payment - NEFT. What is the limit on my Gross income (Total income  - 18% GST) to avail sec 44ada ? Thanks in Advance

Thanks

Mani

 

 

 

Rs. 75 lakhs...           

Sir, I am residing in TamilNadu offering IT freelancing service to my client company registered in Karnataka. I did GST registration when my threshold was about to cross 20lakhs. All my invoices before GST registration didn't have GST number. So did I follow proper procedure to avail the benefit of not paying GST till 20lakhs.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details