Income Tax 101 for Self-employed

Explore a comprehensive guide on income tax for self-employed Indians through this series of engaging videos. Understand the differences between various forms and get answers to common questions to streamline your online ITR filing experience.

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E01: ITR for Self employed Individuals Explained
03 mins
As a self-employed individual, you're responsible for filing your ITR. Hence, it’s crucial to have a comprehensive understanding of the different ITR forms. These include ITR-2 for individuals with income from extra sources, ITR-3 for proprietary businesses, and ITR-4 for presumptive taxation. Moreover, you need to be extra careful when calculating your taxes. Keep your documents ready and complete your online ITR filing by the set date to avoid penalties.
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E02: Comparing ITR 3 and ITR 4 Which One is Right for You
04 mins
Choosing the right ITR form between ITR-3 and ITR-4 can be confusing for self-employed individuals in India. ITR-3 caters to businesses and professionals who maintain detailed income and expense records. It's ideal for shopkeepers, consultants, freelancers, etc. ITR-4, on the other hand, simplifies ITR filing for those falling under the presumptive taxation scheme. This scheme estimates income based on business turnover, making it suitable for small businesses with basic records.
Frequently Asked Questions
No, self-employed individuals cannot file ITR-1 as it is meant for salaried individuals. They must file ITR-3 or ITR-4, depending on their income sources.
The due date for online ITR filing is generally July 31st of the assessment year. This applies to all individuals, whether they are salaried or self-employed.
ITR-3 is for individuals with income from business or profession with a complicated earning structure. ITR-4 is for those with income from business or profession who have opted for the presumptive taxation scheme.
No, an individual cannot file both ITR-3 and ITR-4 in the same year. They must choose the appropriate form based on their income sources and structure.
If you have foreign income, you will need to provide details of your foreign assets, bank accounts, and any tax deducted at source on your foreign income while filing ITR online. Additionally, if you have foreign income, you are only eligible to file ITR-3.
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