I'm a salaried employee who also earns some cash through freelance writing, however it is not regular. I already paid tax on the amount that I earned through freelance.

My Question is should I consider the money earned through freelance as Income from Other source or Business? I also wanted to know which form should I use to file my income tax returns. Is it ITR 1 which is for people with salaried income or ITR4 for business?


If you are freelancing, the best form for you is ITR-4. With this form you can declare your salary income as well as your expenses related to your freelancing.

And you should treat your freelancing income as business. That way you can get max deductions claimed.


You can use the ITR 1 and declare the income from freelancing as income from other sources.

As part of freelancing, certain expenses can be deducted provided they are directly related to work and have proper records. Please consult a CA who can advice you on how to do this. The Actual income shown should be less of the expenses.

  • 1
    but if i file it under ITR1 and declare it from Other Source can i apply exemptions like electricity bill, internet charges etc which I used for frrelancing
    – iJade
    Jun 13 '14 at 6:18

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