SalonMusk
SalonMusk
Tesla

Part time freelancing income - ITR filing doubts

Hi, I have a proper full time job. I freelanced for a month last year. They got my PAN and whenever they paid me in my bank account, total amount is ~1.4L, they deducted TDS under 194C (it's 1% TDS). This freelancing income is listed in my AIS as Business receipts - Receipts from contract (Section 194C). The amount was paid from an entity 'XYZ private limited' even though I worked for an individual..My questions are

  1. Which ITR form to use?
  2. I tried filling ITR1 form. It's not showing my freelancing income in 'Gross Total Income' section. But the TDS deducted by them is shown under 'Taxes Paid' section. I am confused whether I have to add this 1.4L rupees in as Other sources of income in 'Gross Total Income' section or not. Should I? I am confused because it's showing in AIS but not in ITR form. Could you please help?
3mo ago1.9K views
Pro_CA
Pro_CA
Stealth3mo

File Itr 4 instead of 1.

Pro_CA
Pro_CA
Stealth3mo

@SalonMusk it's not other source income. Show it in presumptive.

SalonMusk
SalonMusk
Tesla3mo

Thanks @Pro_CA . I did file an ITR-4 earlier today. I filled up everything in the filing site but still wanted some validation and so went to a CA office and the job got done in less than 10 minutes. They charge me Rs. 200 only.

ProperLace
ProperLace
TCS3mo

Can you share what is your role as a freelancer and how do you manage to get freelancing gigs?

SalonMusk
SalonMusk
Tesla3mo

It was through a co-worker. The co-worker got that work from an usual freelancing platform. The work was for an individual and not for a company.

SalonMusk
SalonMusk
Tesla3mo

When I add this freelancing income in other source of income in ITR-1 form, 2 things happened.

  1. of course my tax liability increased like I have to pay some 40 or 45k extra.
  2. tax interest got added under 234B / 234C which is around 3.5k total.
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