{"id":3791,"date":"2025-08-09T09:08:19","date_gmt":"2025-08-09T09:08:19","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/09\/itr-2025-filing-how-tax-rules-differ-for-freelancers-and-salaried-individuals-tax-news\/"},"modified":"2025-08-09T09:08:19","modified_gmt":"2025-08-09T09:08:19","slug":"itr-2025-filing-how-tax-rules-differ-for-freelancers-and-salaried-individuals-tax-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/09\/itr-2025-filing-how-tax-rules-differ-for-freelancers-and-salaried-individuals-tax-news\/","title":{"rendered":"ITR 2025 Filing: How Tax Rules Differ For Freelancers and Salaried Individuals | Tax News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9494928\">\n<p><span class=\"jsx-730caffcddfd709\">Last Updated:<\/span><time class=\"jsx-730caffcddfd709\">August 09, 2025, 13:44 IST<\/time><\/p>\n<h2 id=\"asubttl-9494928\" class=\"jsx-4625396a04d15488 jsx-3926115027 asubttl-schema\">With ITR 2025 filing season underway, many freelancers are uncertain about how their income is taxed differently from salaried employees<\/h2>\n<div class=\"jsx-45a692afa6f47900 artsharwrp\">\n<div id=\"artshare\" class=\"jsx-45a692afa6f47900 artshare\">\n<div class=\"jsx-45a692afa6f47900 stickdiv\">\n<div class=\"jsx-45a692afa6f47900 deskwrapstkdiv\">\n<div class=\"jsx-45a692afa6f47900 fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" class=\"jsx-45a692afa6f47900 lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-4625396a04d15488 jsx-3926115027 amimg\"><img decoding=\"async\" alt=\"The ITR Filing date has been extended to September 15. (Representative Image)\" title=\"The ITR Filing date has been extended to September 15. (Representative Image)\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-4625396a04d15488 jsx-3926115027\"\/><\/p>\n<p>The ITR Filing date has been extended to September 15. (Representative Image)<\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\"><strong>ITR 2025 Filing For Freelancers:<\/strong> With the ITR 2025 filing season underway, many freelancers and consultants are uncertain about how their income is taxed differently from salaried employees. Knowing the distinctions will help you choose the right ITR form, claim eligible deductions, and avoid tax-related penalties.<\/p>\n<p id=\"1\" class=\"story_para_1\">Salaried income is taxed under the head \u201cSalaries&#8221;, whereas freelance or consultancy income is taxed under \u201cProfits and Gains of Business or Profession.&#8221; This classification determines what deductions you can claim and how you maintain records.<\/p>\n<h3><strong>Tax Deduction at Source (TDS) Rules<\/strong><\/h3>\n<p id=\"3\" class=\"story_para_3\">For salaried employees, employers deduct taxes at source before paying salaries. In contrast, freelancers must manage and pay their own taxes.<\/p>\n<p id=\"4\" class=\"story_para_4\">When clients pay freelancers, they often deduct 10% TDS and deposit it with the government under the freelancer\u2019s PAN. Freelancers should collect Form 16A from clients and match it with Form 26AS to ensure proper credit of the deducted tax.<\/p>\n<h3><strong>Deductions for Salaried vs Freelancers<\/strong><\/h3>\n<ul class=\"listOncontentArticleUL\">\n<li><strong>Salaried<\/strong>: Eligible for a standard deduction of up to Rs 50,000 (old tax regime) or Rs 75,000 (new regime) without needing proof.<\/li>\n<li><strong>Freelancers<\/strong>: Cannot claim a standard deduction but can claim actual <strong>business-related expenses<\/strong>, such as:\n<ul>\n<li>Internet and mobile bills<\/li>\n<li>Stationery and printing<\/li>\n<li>Conveyance costs<\/li>\n<li>Proportionate rent and electricity (if working from a rented space)<\/li>\n<li>Depreciation on computers, printers, and other office equipment<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p id=\"8\" class=\"story_para_8\">Personal expenses cannot be claimed.<\/p>\n<h3><strong>Additional Expense Claims for Freelancers<\/strong><\/h3>\n<p id=\"10\" class=\"story_para_10\">If part of your home is used for work, you can claim a proportion of rent and utility costs as a business expense. Repair, maintenance, and depreciation costs on work-related assets are also deductible. Any expense you claim must be genuine, proportionate, and justifiable.<\/p>\n<h3><strong>Calculating Net Taxable Income<\/strong><\/h3>\n<p id=\"12\" class=\"story_para_12\">Your net taxable income as a freelancer is calculated by deducting eligible business expenses from total consultancy earnings. Other income\u2014like rent, interest, dividends, or capital gains\u2014is taxed under their respective heads and added to your total income.<\/p>\n<h3><strong>Deduction Options Under the Old Tax Regime<\/strong><\/h3>\n<p id=\"14\" class=\"story_para_14\">Freelancers, like salaried taxpayers, can claim deductions under sections such as:<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li><strong>80C<\/strong> \u2013 Investments in PPF, ELSS, life insurance, etc.<\/li>\n<li><strong>80CCD<\/strong> \u2013 NPS contributions<\/li>\n<li><strong>80D<\/strong> \u2013 Health insurance premiums<\/li>\n<li><strong>80TTA<\/strong> \u2013 Interest on savings accounts<\/li>\n<li><strong>80GG<\/strong> \u2013 Rent deduction (up to \u20b95,000\/month) if not receiving HRA<\/li>\n<\/ul>\n<h3><strong>Choosing the Right ITR Form<\/strong><\/h3>\n<p id=\"17\" class=\"story_para_17\">Freelancers who do not qualify for presumptive taxation must file ITR-3. For example, as a content writer, presumptive taxation rules don\u2019t apply, so detailed income and expense reporting is mandatory.<\/p>\n<p id=\"18\" class=\"story_para_18\">Tax rates are the same for freelancers and salaried individuals\u2014the key differences lie in income classification, deduction eligibility, and compliance responsibilities. Staying organised with invoices, receipts, and expense logs is essential for smooth and accurate ITR filing.<\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"authorimg\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2023\/11\/aparna-2023-11-979f2907c6165cf4d4e3836c347fb133.jpeg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/aparna-deb-20948.html\" class=\"jsx-95088aad1b3c53cd atamail\">Aparna Deb<\/a><\/p>\n<p>Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-4625396a04d15488 jsx-3926115027 artcta\">Stay updated with all the latest business news, including\u00a0<a href=\"https:\/\/www.news18.com\/business\/markets\/\">market trends<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/topics\/stocks-to-watch\/\">stock updates<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>, IPO,\u00a0<a href=\"https:\/\/www.news18.com\/business\/banking-finance\/\">banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates\u2014only on News18. Also\u00a0<span data-olk-copy-source=\"MessageBody\">Download the\u00a0<a href=\"https:\/\/onelink.to\/eng-article-eop\">News18 App<\/a>\u00a0to stay updated!<\/span><\/div>\n<p><span class=\"jsx-4625396a04d15488 jsx-3926115027 coral-count-custom\">view comments<\/span><\/p>\n<div class=\"jsx-4625396a04d15488 jsx-3926115027 brdcrmb\"><a href=\"https:\/\/www.news18.com\/\">News<\/a>  <a href=\"https:\/\/www.news18.com\/business\/\">business<\/a> \u00bb  <a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>  <span class=\"brdout\"> ITR 2025 Filing: How Tax Rules Differ For Freelancers and Salaried Individuals<\/span><\/div>\n<div id=\"coral-wrap\" class=\"jsx-9278cad478d6a6dc \">\n<div class=\"jsx-9278cad478d6a6dc coral-cont\">\n<div class=\"jsx-9278cad478d6a6dc coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-9278cad478d6a6dc\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-9278cad478d6a6dc\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-4625396a04d15488 jsx-3926115027 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/business\/tax\/itr-2025-filing-how-tax-rules-differ-for-freelancers-and-salaried-individuals-9494928.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:August 09, 2025, 13:44 IST With ITR 2025 filing season underway, many freelancers are uncertain about how their income is taxed differently from salaried employees The ITR Filing date has been extended to September 15. (Representative Image) ITR 2025 Filing For Freelancers: With the ITR 2025 filing season underway, many freelancers and consultants are&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-3791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/3791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=3791"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/3791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/3792"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=3791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=3791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=3791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}