BENGALURU: For many first time freelancers, tax season can be an awakening call of how their self employed status impacts their tax situation. If your freelancing business is less than a year old, there is nothing quite like filing your first tax return as a freelancer. Freelancers have to file their tax return in ITR-4 form, according to yahoo.com.

Paying Tax in Advance:

Paying Tax in advance is a good thing but if your total tax liability in a year exceeds more than 10,000, then you are liable to pay advance tax. This in a general sense means paying tax on your income at frequent intervals which are laid out by the tax department. If you have not paid any advance tax during that year then you may have to pay interest under section 234B and 234C.

Expenses That Are Deductable:

Expenses like depreciation expense on a computer can be deducted from your income. Rates for depreciation of the computers and other equipment used for the purpose of your freelancing work are set out clearly in the Income Tax Act. Other general expenses such as advertising expenses, telephone costs, printing costs, even when you have taken a table on rent is also deductible under Income Tax Act.

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