Digital economy · Global Freelancing
Advance tax for freelancers: quarterly self-assessment and payment
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Facts
Freelancers have no employer to deduct TDS. Your foreign clients pay you gross. You are entirely responsible for advance tax payment on a quarterly schedule.
Provisions and law
- IT Act, Sec 207-209 | Sec 424, 425 (old 234B, 234C) interest
Analysis
Schedule: Q1 (Jun 15), 15%. Q2 (Sep 15), 45%. Q3 (Dec 15), 75%. Q4 (Mar 15), 100%. If you miss or underpay: 1% per month simple interest under Sec 424, Income-tax Act 2025 (old Sec 234B; underpayment) and Sec 425 (old Sec 234C; quarterly shortfall). On ₹5L annual tax liability, missing Q2 means ₹22,500 in interest (45% of ₹5L = ₹2.25L unpaid × 1% × 10 months). Under Sec 58 (old Sec 44ADA) simplification: Sec 58 (old Sec 44ADA) filers pay advance tax in one shot on March 15 (100%), no quarterly requirement. This is a major simplification benefit of Sec 58 (old Sec 44ADA).
Conclusion
Talk to a Savvy for the exact next step on your case.
A Savvy can do this for you
Quarterly salary TDS return, Form 138 (earlier 24Q)
₹1,999
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