29 May 2022
Hi, I'm a salaried person. I also do intraday, F&O and short term investment. I will file ITR for the first time. As per the online resources, I should file ITR 2 for the above cases. But I also did a bit of freelancing (not continuing now) and income from it was just 500 rs. So please tell how and where can I adjust this income. Or I will have to go for ITR 3.
29 May 2022
Income as a Freelancer (consultant) is taxed under the head “Profits and Business or Profession".
Freelancers and consultants need to fill out and submit either ITR-3 or ITR-4.
ITR-3 applies to income from business or profession. A freelancer can opt for presumptive taxation and declare 50% of their gross receipts as their income by filing ITR-4.
30 May 2022
Given that your freelancing income is just Rs 500, better ignore that for a minute and focus on intraday & F&O activities for the purpose of determining which return form to use.
In case you have Loss or profit from these activities that is less than 6% of cumulative turnover, please file ITR-3. Else, you may file ITR-4.
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