Tax Guide for Freelancers
General Deductions:
Your taxable income shall be your gross income which is clearly mentioned under section 80. If any of your clients have deducted TDS on payments made to you, you can always take credit of this tax deducted from your final tax dues. As a freelancer, you can claim all the deduction listed under section 80 just by fulfilling the conditions listed in that. If you have made investments to PPF, bought NSCs/paid a life insurance premium, you can avail deduction under section 80C.
Acknowledgements of Freelancing Work:
Usually if you have received your payments as bank credits/cheques that you have deposited in your account, you can get the details of your gross income by summing them up. Your bank account statements and credit card statements are the most important documents which you need. It’s best to account for income & expenses on accrual basis.
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