The income tax provision is equally applicable to all the people in the country. The eligibility is decided as per the income tax bracket of government of India. Now, freelancers also have an income tax provision for them. As per the government rule, freelancers who have income less than 50 lakhs, only 50% of their income will be taxed in a year. For instance, if the income of a freelancer in one year is 10 lakhs, then only 5 lakhs of his income will be taxed.
Zero tax on 50% Income!#tax #taxes #income #incometax #invest #government #governmentofindia #finance #stockmarkets #facts #mukulagrawal pic.twitter.com/kBww1fduVL
— Mukul Agrawal (@themukulagrawal) July 5, 2022
Under section 44ADA, the freelancers or professionals whose income is less than 50 lakhs qualifies for this income tax provision. Under this scheme, the taxpayer will need to offer their salary receipts for availing this benefit. The taxpayer should follow the provisions of section 44ADA and should report their gross receipts and income.
However, the taxpayer should calculate their savings and expenses properly. By this, one can keep a record of their savings on the income tax provision. This could benefit million of taxpayers with those earning, taxed at the prevailing rates.
