ITR = Income Tax Return. Think of it like a homework sheet you give to the government that says how much money you earned and how much tax you paid.
As a freelancer who recently navigated the ITR filing process, I understand the challenges and confusion that come with filing income tax returns.
After successfully filing my second zero ITR using Form ITR-4 and dealing with the 44ADA profession error (which I managed to fix after watching a YouTube video), I want to share insights on why freelancers must file their ITR and how to do it correctly.
Who can file an ITR?
You or your parents can file an ITR.
Do you need any professional to do that?
No. you can do this yourself, if you have your PAN, Aadhar, computer and internet connection through the government of India’s e-filing portal.
Terms and conditions when and where one should file his or her ITR
- If you earn a salary like an employee, you should file an ITR.
- You get money from a business (shop/online/offline) or freelance work like me, you should file an ITR.
- You earn money from the bank (interest), or from renting your additional house, or selling something expensive like land, then also you should file an ITR.
- Someone already took tax from your money (called TDS) and you want that money back.
- You want to show proof of income for a loan, visa, or school/college forms. (To show your credit worthiness near a bank or lending institution as a businessman, or individual your ITR history creates credibility as a official document from the Government of India.)
- You have investments or foreign income (grown-up stuff) — then you must tell the government.
- Companies, firms, trusts — they also file ITR, because they earn money too.
- Shorter: If you or your family made money, there’s a chance you need to file.
If you are a daily wage worker, and earn 2 lakh a year shall that person also need to show his ITR?
Short answer is NO! If your total income in a year is more than the government’s basic exemption limit, you should file an ITR. For most people in India for the recent tax assessment year 2025-26, that limit is around ₹2.5–3 lakh depending on which tax regime you pick and your age.
Generally this thing is declared by the government India’s finance minister, on his or her statement in the Lok sabha in every budget session, while presenting the budget.
You can find similar FAQs regarding the exemptions here: FAQs on New Tax vs Old Tax Regime | Income Tax Department
Why do we file ITR?
- To tell the truth about how much you earned.
- To pay any tax you owe (or to get back tax if too much was taken).
- To avoid fines — if you don’t file when you should, the government can charge penalties.
- To prove you earn money (banks and visa people ask for this).
- It helps the country — taxes pay for roads, schools, hospitals (like paying for shared things).
How can we file an ITR?
Collect papers that show money earned (salary slips if you are a salaried person, bank statement if you are a freelancer like me, or your book of accounts if you are a business etc.).
- Log on to the ITR portal
- First register with your PAN or Aadhar if you are new to the site
- Then read this official government’s user manual to file the ITR 4 as a freelancer: File ITR-4 (Sugam) Online User Manual | Income Tax Department
My Experience
Yesterday I filed my ‘0’ ITR for the second time. Last year was my first time filing the ITR as a freelancer.
I filed my ITR with the ITR 4 form and selected section 44ADA to furnish my income details.
so before understanding 44 ADA, Let’s understand what are all the ITR forms available and for whom?
- ITR-1 (SAHAJ) – For salaried professionals only
- ITR-2 -Salary + other income For eg. house rental income
- ITR-3: Business/profession (freelancing or own work or self employed) (and maintain proper account books)
- ITR-4 (SUGAM)– is a presumptive taxation scheme under sections like 44AD / 44ADA / 44AE, and whose total income ≤ ₹50 lakh for people who are doing freelancing (profession) and or business.
- ITR-5 – Firms, LLPs, AOPs
- ITR-6 – Companies (private/public)
- ITR-7 – Trusts/political parties/non-profits
Okay, don’t you think ITR 3 and 4 are the same?
ITR 3 is selected if you are a business/professional/freelancer and keeping proper book of accounts (i.e profit & loss account, balance sheet etc)
ITR 4, is mainly used by businesses, professionals and freelancers who don’t maintain their proper book of accounts and use this if you’ve opted for the presumptive taxation scheme (flat % calculation) under sections like 44AD, 44ADA, 44AE.
Okay, got it,
what is 44ADA?
For freelancers, they mostly depend on their bank account statement to find their credits, so with this you can show 50% of your total income as your gross income and need to pay tax on that 50% only. remember this rule applies to those who earn less than or equal to 50 lakhs rupees a year.
Just yesterday, I finally hit “submit” on my Income Tax Return (ITR). The deadline of September 15th was looming, a date I’d seen in a notice.
As a freelance designer and digital marketer, my income isn’t a straightforward monthly salary, so I opted for the ITR-4 form to declare my earnings under the presumptive scheme of Section 44ADA.
And that’s when I hit a wall: a “44ADA profession error.” For a moment, I was stuck. But after a bit of digging and watching a helpful video, I figured it out.
The fix was simple, but the experience taught me a valuable lesson. It made me realize how many freelancers like me are navigating this complex system alone. it was bit tricky in section 44 ADA, but I found the section hidden under a button (very bad ux) but figured out and entered my profession/business related details. and finally authenticated with my Aadhar OTP to validate the total form submission.
So, I’m sharing my story and what I learned to help you, my fellow freelancers, understand not just how to file your ITR, but why it is one of the most empowering financial steps you can take.
