Tax Talk: Know how to compute tax on income from freelancing
Due to unmatched flexibility, even traditional jobholders are now seen freelancing on the side in all industries—including sales, education, delivery, IT, and data processing. Pertinently, the supplemental income earned through independent work has to be offered to tax under the Income Tax Act.
Tax on income from freelancing
Income from freelancing has to be reported under the head “Profits and Gains from Business or Profession”. Although the tax rate at which a freelancer’s income is assessed is no different than that applicable to a salaried individual, the “standard deduction” allowed from salary income cannot be claimed on income from freelancing.
Nevertheless, a multitude of expenses actually incurred in a fiscal year in relation to the
Read more on financialexpress.com
