India Freelancer & Self-Employed — ITR-3/ITR-4, GST & TDS Return

Establish the client's residential status under Section 6 of the Income Tax Act (Resident & Ordinarily Resident, Resident but Not Ordinarily Resident, or Non-Resident) and confirm the applicable Assessment Year (AY 2026-27 for FY 2025-26). Elect between the Old Tax Regime (with deductions: 80C, 80D, HRA, etc.) and the New Tax Regime under Section 115BAC — the new regime is now the default for FY 2025-26. Determine whether the client qualifies for Section 44ADA presumptive taxation (gross receipts ≤ INR 75 lakh for professionals) or Section 44AD (gross turnover ≤ INR 3 crore for traders/contractors).

Gather all income streams: professional fees, freelance income, business receipts, interest (savings/FD), capital gains (if any), rental income, and any salary from prior employment. Download Form 26AS (Annual Tax Statement) and the Annual Information Statement (AIS) / Taxpayer Information Summary (TIS) from the Income Tax portal and reconcile TDS credits deducted under Sections 194J, 194C, and 194O against invoices raised. Identify any mismatches where TDS was deducted but not deposited by the payer.

For clients filing ITR-3 (maintaining books of account), compute allowable business expenses: rent, travel, telephone, professional subscriptions, depreciation (Section 32), and any sub-contractor payments. For clients under Section 44ADA presumptive scheme (ITR-4), 50% of gross receipts is deemed as income — no separate expense tracking is required, but the client must declare they are not maintaining books. Apply Chapter VI-A deductions (80C: PPF/LIC/ELSS up to INR 1.5 lakh; 80D: health insurance premium; 80G: donations) if on the Old Regime.

Determine GST registration requirement: mandatory if aggregate turnover exceeds INR 20 lakh per annum (INR 10 lakh for special category states); voluntary registration if below threshold. For registered clients, verify GSTR-1 (outward supplies, monthly/quarterly), GSTR-3B (monthly summary return), and annual GSTR-9 filings are current. Reconcile GST Input Tax Credit (ITC) claimed in GSTR-3B against GSTR-2B (auto-drafted ITC statement). Confirm GST payments are not in arrears before ITR filing, as GST turnover data flows into AIS.

Compute advance tax liability under Section 208: mandatory if estimated tax liability exceeds INR 10,000 for the year. Calculate interest for shortfall or non-payment of advance tax installments under Section 234B (default in payment) and Section 234C (deferment of installments). For self-employed individuals under presumptive taxation (44ADA/44AD), all advance tax is due in a single installment by 15 March. Verify challan deposits via Form 26AS and Challan ITNS 280.

Prepare and e-file the Income Tax Return on the Income Tax portal (incometax.gov.in). Self-employed professionals with business income file ITR-3 (with balance sheet and P&L); those under presumptive schemes file ITR-4 Sugam. Verify pre-filled data from AIS/Form 26AS against prepared figures, enter all income heads, deductions, TDS credits, and advance tax challans. E-verify the return within 30 days of filing using Aadhaar OTP, EVC via net banking, or DSC. The due date for self-employed individuals (without audit) is 31 July 2026 (AY 2026-27); those liable to tax audit under Section 44AB file by 31 October 2026.