Tax and money questions, answered clearly
Short answers to the money and tax questions people in India ask most often. Each answer states the law and year it applies to and links to official sources.
- Is freelance income taxable in India? Yes. If you are resident in India, your freelance fees are taxable as income from a business or profession, whether your clients are in…
- Is GST registration compulsory for every freelancer? No. A freelancer who only supplies services must register once aggregate turnover in a financial year crosses Rs 20 lakh, or Rs 10 lakh…
- Can NRIs file income tax returns in India? Yes. A non-resident who earns income in India, such as rent, interest on an NRO account or capital gains, may need to file an…
- How does TDS affect my take-home salary? Your employer estimates your tax for the whole year and deducts a share of it from each month's salary as TDS (tax deducted at…
- What is the “Tax Year” under the Income-tax Act, 2025? The Tax Year is the financial year, from 1 April to 31 March, in which you earn your income. It replaces the old "previous…
- Is income up to Rs 12 lakh really tax-free? Under the new tax regime, a resident individual whose taxable income is Rs 12 lakh or less pays no income tax, because a rebate…
- When do I need to pay advance tax, and by when? If your tax for the year, after TDS, is Rs 10,000 or more, you pay advance tax in instalments: 15% by 15 June, 45%…
- What records should a freelancer keep for tax? Keep copies of every invoice, bank statements showing payments received, proof of foreign payments, bills for business expenses, and your Annual Information Statement and…
- Do I charge GST on work for foreign clients? Usually not. Services provided to a client outside India are generally exports of services, which are zero-rated under GST. That means 0% GST, as…
- New or old tax regime: which one is better for me? It depends on how much you can claim in deductions and exemptions. The new regime has lower rates and a larger rebate but few…
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