ITR filing deadline: Can freelancers declare earnings as business income? Tax experts explain

Freelance income classification depends on the work arrangement: independent contractors with multiple clients and business risk report as business income; those with employer-employee relationships (fixed hours, supervision, salary) report as salary.

Presumptive taxation schemes apply to freelancers with gross receipts below ₹75 lakh for professionals or ₹3 crore for businesses (subject to cash receipt conditions), but many eligible freelancers do not opt for them, leading to unnecessary bookkeeping or audit burdens.

Tax experts advise correct classification to avoid notices, penalties, and filing errors; they also warn that declaring profits lower than presumptive rates without maintaining books or audit can result in non-compliance.

The ITR filing deadline is 31 July, and freelancers must ensure compliance to avoid tax notices.