Do you know how a YouTuber or freelancer can file Income Tax Return in India? Now people are little concern as the last date for Income Tax Return filing coming closer. Many fear to pay penalty addition to tax if they miss the return filing before the due date. This is a special year due to Covid-19 in the world. Many professional missing personal consultation from tax professionals. They fear delay in their return filing due to this issue.
Let me tell you that the tax department has already taken many initiatives to ease down the Income Tax Return Filing. They have simplified the forms for individual taxpayers. Now working professional can take Form 16 from employers to file return themselves. But this is not so simple for other professional like Freelancers or YouTubers in India. The government and IT department working on process to ease down return filing for them.
Youtube and Freelancer has to file their Income Tax Return under ITR-4 Form
If you work as a Freelance, running YouTuber channel or providing placement services. Then you required to file a different form for your income tax. You required to file ITR-3 or ITR-4 form for your annual returns. ITR-3 form has to be filled by the people who earn money from the internet or provide professional services. The government encouraging people to earn money from Internet services. They are promoting self-employment fro, young professionals. Government of India allowed such professional to file Income Tax Return under ITR-4. Under this form, they can opt for preemptive taxation and show 50% of their gross receipts under ITR-4.
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If you are Freelancing or Youtube and you have bought some goods for your work. You will be allowed to claim the expenses to reduce your tax burden. These expenses can be rent, repair, depreciation, office expenses. Travel, food, entertainment and hospitality expenses can be claimed under this section. Claims of these expenses will reduce your taxable income and it will help to save taxes.
Internet professionals can opt for tax rebate from expenses during Income Tax Return filing
If you have taken health insurance for yourself or your family. If you live in a house on rent then you can show these expense to reduce your tax liability. Also, if you have made any tax saving investment, such as FDs or mutual funds, that can also help you to save taxes. Apart from this if you have deposit money in PPF etc., you can claim them under 80C, which will reduce your taxable income.
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Let me tell you that many youths attracted to the self-employment these days. They are running their online store, running Youtube Channels or providing consulting services. Many are earning significant money from online platforms. It is small but a fast-growing segment for people earning online. Now the government has to ease down the return filing process for these people.
