TDS for freelancers

Dear Sir,

I have been working for a consultancy without any contract since April 2013 as translator / interpreter. Last month they deducted 4600 INR from my payment stating that the gross payment made to me till last month was 41000 INR and as it crossed 30000 INR they deducted 10% for TDS and they also told me that from now on this 10% of TDS will be deducted from every payment they will make to me in future. Also they informed me that if my annual income will not cross 300000 INR and if i will submit my tax returns then the deducted amount for TDS will be refunded to me.

I have never ever done Income tax file returns. I dont know if the above information provided by the consultancy I work for is true.

I dont believe these consultancies at all.They did not inform me about this deduction before making the payment. I noticed it when i recieved the payment.

Please guide me about the TDS rules set by the govt of India for freelancers and about how to do the Income tax file returns.

I will very thankful to you.

Best regards!

asked Jul 10 '13 at 11:11 by NishantSaumya 111


Its mandatory for them to deduct TDS @ 10% if annual amount Exceeds Rs 30,000. There is nothing wrong in that.

You now will have to get back amount from IT department after filing income tax returns.

You would need to file returns using ITR-4 as income is from business/profession.

Frankly, filing ITR-4 is bit complex and its hard for a starter to fill himself. Its needs profit/loss accounting where you can declare all expenses (internet, telephone, car, marketing, hardware purchase, stationery expenses etc).

I would advise you to take help of a tax professional/CA in return filing.

answered Jul 11 '13 at 19:31 by Pankaj Batra 5.2k320

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Asked: Jul 10 '13 at 11:11

Seen: 2,521 times

Last updated: Jul 11 '13 at 19:31