India has 7.7 million people in gig economy which is expected to more than triple to 23,5 million

Filing income tax for freelancers is not as straight as salaried professional Income tax act does not define freelancers Freelancers receive income against invoice as salaried profession receive salary

There are two forms that can be used by freelancers for filing income ITR 4 ITR 3

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Presumptive taxation scheme gives relief to the small tax payers from the tedious work of maintaining accounts

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If a person earn less than 50 lakh a year he can file tax under presumptive taxation scheme 44ADA

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In 44ADA taxable income is calculated at 50 % of gross profit

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Section 44AD apply to those for whom the turnover of business is less than 2 crore

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The presumptive taxable income ACCORDING TO SECTION 44AD is 6-8% of turnover

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Section 44AE applies to those in the business of plying, hiring , leasing of goods and carriages

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Freelancers should register for GST if the total amount of income rendered by them 20 lakh per annum

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