Skip to main content

How Freelancers can take Claims and Reduce Tax





The benefits you can claim to save tax as a freelancer

It's tax season, and as the salaried hurry to meet the deadlines to submit proof of investments and claim benefits, for freelancers, the scenario is quite different. Unlike salaried individuals, the latter don't have employers to lay down the rules and roll out the facilities for them. However, while tax filing can be more of a hassle for freelancers, since they have to do all the legwork themselves, they also have certain advantages when it comes to benefits.

As individuals, they can claim the tax-saving deductions that are available to their salaried counterparts, and as freelancers, they can also claim the deductions available to business owners.


Freelancers have the best of both worlds. They can claim the different Section 80 tax-saving deductions as well as on the expenses incurred for doing their work.


Most freelancers are aware of the Section 80 benefits they are eligible for as individual taxpayers. To boot, they can also claim tax-saving deductions on their business expenses. Here's how a freelancer can go about claiming these benefits:


DEPRECIATION OF ASSETS

As a freelancer, the electronic equipment you use for your work are your assets. These could include computer systems, laptops and cameras. The more these assets are used, their value depreciates. A small part of the value of the asset can be claimed as a deduction from your taxable income every year. Even the vehicle you use to commute for work is an asset that you can claim depreciation on. Any repairing cost can also be claimed.


OFFICE OVERHEADS

The expenses that you incur to run the day-to-day activities are the overheads you bear. You can claim these expenditures as deductions while filing your tax returns. If you have purchased a website domain to showcase or discuss your work, you can claim deductions on that too.


CLIENT MEETING EXPENSES

Freelance work often involves meeting clients at coffee shops or restaurants. If you pay for the food or beverages consumed during such meetings, you can claim deductions.


You can also claim tax-saving deductions on travel expenses incurred to meet clients. This includes deductions on fuel expenses for own vehicle and fare for hired cabs. Expenses on outstation work trips can be claimed.


OFFICE RENT

Most freelancers work out of home or coworking spaces. If you rent a desk at a coworking space, you can claim deduction on the amount you pay . If you work from a house you rented yourself, you can claim part of the rent. If you work from family home, you can enter into a rental agreement with a parent or relative who owns the property, and pay them rent, which can be deducted from taxable income.


CONTRACTING COSTS

For certain projects, you might have to enlist the services of another person or firm. If you have quoted this entity's charges in your fees for the project, you will need to make the payment to whoever you employ. Such payments, which are made on a contractual basis, are also deductible.














Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300



 

Popular posts from this blog

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...
Read more

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...
Read more

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...
Read more

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Read more

Use Mutual Fund SWPs for getting fixed payments

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Investors time withdrawals optimally to save on tax The systematic withdrawal plan, or SWP, could be called the lesser known cousin of the much talked about and publicised systematic investment plan (SIP). There's yet another cousin — the Systematic Transfer Plan ( STP ). In SIP, you invest a fixed sum of money at regular intervals (monthly/ quarterly) to buy some units of a mutual fund scheme. In SWP, as the name suggests, you do the opposite: You redeem some mutual fund units from your portfolio to get a fixed sum of money at regular intervals (monthly/quarterly/half year/yearly). In SIP, you get a higher numbers of units when the markets are down, and lesser in a buoyant market. In SWP, going by the product logic, you redeem higher number of units when the markets are do...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now