Essential Tax Forms Every Indian Freelancer Should Know
TDS certificates and credits: getting what you’re owed
01
Form 16A from clients: what to ask for and check
Request quarterly Form 16A from every client deducting TDS. Verify your PAN, amounts, and section codes. Check that the certificate number matches what appears in 26AS. A neat folder of PDFs speeds filing and protects cash flow when credits really matter.
02
Spotting mismatches: 26AS/AIS vs your invoices
If 26AS shows a TDS credit you never received, or AIS shows income a client mis-reported, raise it early. Share a reconciliation sheet highlighting invoice numbers, dates, and client confirmations. A polite, specific email usually resolves credits well before deadlines bite.
03
Section codes to watch: 194J vs 194C on professional fees
Many freelancers see deductions under Section 194J for professional services, generally at ten percent, while 194C is for contracts at a lower rate. Misclassification happens. Ask clients to correct errors so your 26AS aligns, and your effective tax outflow stays fair.
Paying taxes correctly: advance and self-assessment tools
Quarterly advance tax with e-Pay Tax (Challan 280)
Estimate profits and pay advance tax by June 15, September 15, December 15, and March 15 at 15%, 45%, 75%, and 100% respectively. Use e-Pay Tax on the portal, historically called Challan 280. Save acknowledgments; they feed into 26AS and smooth your filing.
Self-assessment tax before filing: challan details and minor heads
If you still owe taxes at filing time, use self-assessment tax with the correct minor head, typically 300. Enter your PAN, assessment year, and category carefully. One digit wrong derails credit reflection. Upload proof into your tax file records for seamless verification.
A short cautionary story: mixing up challan codes and fixing it
A copywriter once used the advance tax minor head instead of self-assessment. The credit didn’t match the ITR, delaying the refund. They filed an online challan correction request through the bank, then reconciled 26AS. Lesson learned: double-check minor head and assessment year.
Old vs new regime choices: Form 10-IEA for freelancers
Freelancers with business income use Form 10-IEA to opt into or out of the old regime under Section 115BAC rules. File it within the prescribed timeline tied to your ITR due date. The choice impacts deductions, rates, and future switching flexibility.
Old vs new regime choices: Form 10-IEA for freelancers
The regime option for business income must be exercised on time and has limited opportunities to withdraw. After withdrawal, you generally cannot opt in again unless business income ceases. Calendar your deadline now, and subscribe for an alert before your due date.
Export of services under GST: LUT (RFD-11) and documentation
If GST-registered, file a Letter of Undertaking (LUT) using RFD-11 to export services without paying IGST. Maintain contracts, invoices, and proof of foreign receipt. Keeping GST returns consistent with ITR revenue builds a defensible paper trail across both tax regimes.
Incoming forex: FIRC, bank advices, and reporting in ITR
Collect Foreign Inward Remittance Certificates and bank SWIFT messages as evidence of inward payments. These are not income-tax forms, but they substantiate receipts shown in ITR and reconcile with AIS. Attach notes in your records so queries can be answered in minutes.
Books, thresholds, and audits: forms that trigger at scale
Professionals eligible for Section 44ADA can use presumptive taxation up to fifty lakh rupees, potentially extended to seventy-five lakh if cash receipts do not exceed five percent. Track your digital versus cash share. The right choice shapes your ITR form and compliance.
Books, thresholds, and audits: forms that trigger at scale
If you exceed professional thresholds or declare lower profits without presumptive cover, a tax audit may apply. Your auditor uploads Form 3CA or 3CB with detailed Form 3CD. Align books early; missing vouchers or contracts can turn a routine audit into a scramble.
