ITR

Salary and freelance income in one ITR-4

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Yes, ITR-4 can include salary along with presumptive business or professional income, if total income is within ₹50 lakh and no bar applies. Freelance design work may fall under 44AD or 44ADA depending on its nature.

Provisions

Sec 44ADA (now Sec 58); Sec 44AD (now Sec 58); Sec 16 (now Sec 19)

Analysis

If salary is ₹12,00,000 and freelance receipts ₹6,00,000, salary goes in the salary schedule with standard deduction, and freelance income at 50% (₹3,00,000) if it is a specified profession like interior decoration, or 6% or 8% under 44AD if not. Graphic design is not clearly a specified profession, so many treat it under 44AD; take advice. Total income here is within the ITR-4 limit.

Close

  1. Collect Form 16 and freelance receipts
  2. Decide whether the work falls under 44ADA or 44AD
  3. Fill salary and business schedules
  4. Remember the due date is 31 August if business income is there

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