Even though it’s not time to file your tax return for this financial year (FY 2015-16) yet, make sure your tax dues are paid in full.
Tax rules require you pay all your taxes by 15th March.
Quick 3 facts you need to know –
- Pay all your taxes – Your taxes work very differently from the salaried. While TDS takes care of what a salaried person earns, for freelancers tax dues have to be calculated and paid in full by 15th Otherwise penal interest may apply under section 234B and 234C.This is because advance tax rules usually apply to you. As per these rules 100% of your taxes should be paid on or before 15th March.
- File your past returns and be compliant – A lot of freelancers work for companies outside India who deduct tax and transfer payments. Even though TDS is deducted by your clients, this does not absolve you of your responsibility to file returns. Freelancers are allowed to deduct expenses from your receipts. If your clients have deducted TDS from your receipts, reducing expenses may in fact lower your taxes and you may be eligible for a tax refund. The tax department has been sending out emails and SMSs to non-filers. Since tax department has access to your expenses & transactions and investments made during the year.
If you haven’t yet prepared your expense details for past years and filed your tax returns you can do so now! Write to us firstname.lastname@example.org
Returns for FY 2013-14 and FY 2014-15 can still be filed. Our experts can prepare your profit or loss statement and calculate tax payable or refundable. Do note that 31st March 2016 is the last date to file your tax return for FY 2013-14. Reach out to us email@example.com if you need help!
- Save taxes while you can – Even though your return works very differently from that of a salaried, you are eligible to claim all the deductions listed in Section 80 of the income tax act. You can reduce Rs 1,50,000 from your taxable income by taking benefit of section 80C. This can be done by investing in PPF, or buying ELSS or NSCs. You can also claim LIC premium under section 80C (see full list here). You can also purchase a medical insurance for yourself and your family and claim deduction under section 80D.