ITR deadline Aug 31: Freelancers, side hustlers must pick right form

The August 31 deadline for filing income tax returns (ITR) for non-audit cases is approaching. Livemint reports that freelancers must treat their income as business or professional income under the Income-tax Act. They must choose between ITR-3, for those maintaining regular books of account, and ITR-4 (Sugam), for those opting for the presumptive taxation scheme under Section 44ADA with total income up to Rs 50 lakh. The Income Tax Department has shared a checklist on X to help taxpayers decide between the two forms.

Freelancers earning from foreign clients must report that income after converting it to rupees, and may need to pay advance tax if total liability exceeds Rs 10,000 after TDS. Unlike salaried employees who get a standard deduction, freelancers can claim actual business expenses such as internet bills, rent, and depreciation. Salaried employees with a side business, Livemint adds, must report salary and business income separately, using ITR-3 or ITR-4, and may require GST registration if revenue crosses Rs 20 lakh for services.