A freelancer or freelancer refers to a person who has not served certain companies or employers for a long time, he is self-employed. The internet has revolutionized all areas of life. Work or work is one such field. If someone wants to work independently and don’t want the constraints he encounters in normal work, he can get a project based on online skills and abilities, which can range from a few hours to a few months. Today, there are several websites that provide services in the world of freelancers.

These freelance websites are considered a major source of work for freelancers. Today there are a large number of people working as freelancers. Many companies use these sites to prove their projects to freelancers. These companies or employers usually offer jobs online because it saves them a lot of money and significantly reduces their company budget. The availability of a large number of employers on freelance websites also poses problems for freelancers. Some freelancers were scammed by these freelance websites. These sites have taken some effective measures to deliver high quality work. Freelancers can also avoid these scams by following these simple steps:

1- Feedback or rating:
All websites offer scoring or feedback functions. If the freelancer is happy with the employer he works for, he can provide feedback or rate him. Taking into account various factors such as cooperation and payment, giving feedback or ratio. When applying for a project, make sure the employer has good feedback or reviews. A higher rating means the employer is trustworthy and you are sure of your payment.

2- Employers who paid to publish the project:
There are some employers who pay website fees to market their projects in a better and more efficient way. These employers are looking for freelance writers with ribbons or banners, who can be private, featured, or full-time. These are legit employers and you can be happy with the payment while working for them.

3- Free Samples:
Sometimes your employer may ask you to provide work samples. He may need this to evaluate your skills. If you already have one, you can give him a sample work. He may ask you to create a new sample work based on his needs or requirements. If he asks you to do this, please don’t. you have been tricked. This way, he gets the job he needs from you and other freelancers applying for the same project. He will complete his work without paying any compensation.

4- Payment:
Some employers may say that you will not receive the money until the project is fully completed. In this case, you can ask your employer to pay you each week for the work you could complete in a week and request milestones. If your employer comes up with an excuse not to pay this way, be careful.

Income Tax for Indian Freelancers

Note: The content of this article pertains to Indian freelancers.

Freelancers are affectionately referred to as “extra income” for a variety of reasons. Some people want their hobbies to pay for themselves, while for others it’s to “test the waters” before making a major decision. However, this is not the point. The point is, freelance income is indeed income, no matter how small. And: “Under the provisions of the Income Tax Act of 1961, all income derived from freelance work will be taxed as “business/professional gains and gains.”

Most self-employed persons are not aware of this special law (Income Tax Act 1961), also because they do not pay income tax. However, ignorance of the law is unacceptable and the freelancer could face legal penalties for failing to pay income tax.

As a freelancer, not everyone has the option to hire a chartered accountant, not to mention that we freelancers are careful about disclosing our source of income to others unless this person is a family member or very trustworthy . to pay taxes and do paperwork themselves.

However, any financial-related website (government website or other website) is full of jargon, making it increasingly difficult for a person with a non-financial background to understand and calculate the tax on their own. As a self-employed person, I fully understand and sympathize with this self-employed person.

Here’s a quick summary from the ebook on how Indian freelancers handle their income tax calculations until they’re ready to hire the services of a CPA:

For tax year 2013-2014, if your annual income is more than 2,50,000-, you are responsible for paying taxes

The typical freelancer handles multiple clients and uses multiple payment gateways to generate revenue (in other words, pay for the services/products provided by the clients). Income transactions should be separated from bank statements and personal transactions to avoid calculation errors.

Business expenses, such as paying for your printer cartridges, new PCs, domain hosting fees, etc., can be deducted from total income. Income tax is calculated on the basis of income.

The depreciation of assets will significantly reduce the ultimate tax payable if necessary.

In addition to business-related expenses and asset depreciation, certain investment portfolios may also receive tax relief below 80C. (e.g. PPF, home loan, etc.)
Taxable income = net income-total deduction

Use this chart to understand what percentage of your taxable income is taxable

Govt.Of.India allows its citizens to pay taxes online through its website.

This makes the calculation and payment of full income tax simple and convenient, without having to queue at the bank or tax office.

Every citizen with an income has a responsibility to pay taxes to the government and contribute to the development of the country. However, some of us have lost the correct information on this matter. This eBook is intended as an educational guide for freelancers in India so that they can pay taxes on their own until they can pay CA.

 

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