Freelancers in India: Why Your Side Income Isn’t “Extra”

[nihalsari]

Many freelancers and side-hustlers in misunderstand how their income is taxed. Freelance earnings are not treated as miscellaneous income—they fall under business income, meaning they are taxed under the “Profits and Gains of Business or Profession” category. This classification affects how you calculate taxes, which return forms you use, and what deductions you can claim.

In addition, clients may deduct TDS if payments cross certain thresholds, and freelancers with higher annual receipts may need to register for GST. Understanding this structure is crucial, as filing incorrectly can lead to overpaying taxes or receiving compliance notices from the tax department.

[cryptoenthusiast]

lol most freelancers have no idea their income is considered business income… thought I was just “earning cash