Opting for presumptive tax reduces burden on freelancers: Experts

They don't have to maintain books of account or get them audited

According to a recent report by NITI Aayog, the gig economy in India employs 7.7 million individuals. This figure is expected to more than triple to 23.5 million by 2029-30. Under the Income-Tax (I-T) Act, 1961, freelancers who earn more than the basic exemption limit must file an income-tax return (ITR). The rules and processes that apply to them for filing ITR are different from those that apply to salaried individuals.

Who’s a freelancer

The I-T Act does not have a definition for freelancers. V.M. Kannan, senior associate, SKV Law Office, says, “It’s any income generated by using one’s skills and