India’s freelancing economy is booming – from digital marketers to writers, many are building their businesses.
But without proper tax awareness, you risk penalties, notices, or even legal trouble.
At Amiko Finserv, we help freelancers across India handle taxes correctly.
Below are 10 real-world mistakes that can cost you dearly – #7 is surprisingly common!
❌ 1. Thinking Freelancers Don’t Need to File Tax
You must file an ITR if you earn more than ₹2.5 lakh per year – even as a freelancer.
Learn how to file your first tax return as a freelancer here ← official outbound link
🧾 2. Not Creating Invoices
Without proper invoices, you’re unprepared during GST or income tax scrutiny.
💡 Tip: Use our free invoice templates (Coming soon on AmikoFinserv.com)
⚖️ 3. Mixing Personal & Business Expenses
Claiming your Zomato order as “business lunch”? Be careful – it won’t work in tax audits.
🧮 4. Ignoring Advance Tax
Missed your quarterly advance tax? That’s a sure-shot way to get charged with interest by the IT department.
🧾 5. Skipping GST Registration
If your income exceeds ₹20 lakh annually, GST registration is mandatory.
Read our beginner’s guide to GST for freelancers ← outbound link
🌍 6. No FIRC for Foreign Payments
Payments via Upwork, PayPal, or Wise must be documented using FIRC certificates to avoid FEMA issues.
🚫 7. Taking High-Value Cash Without Record
Accepting ₹50,000+ in cash without records? That’s ₹1 lakh penalty under Section 269ST of the Income Tax Act.
💼 8. Ignoring Valid Deductions
Laptops, software tools, internet bills – these are all deductible expenses!
Start tracking now.
🧾 9. Filing the Wrong ITR
Many mistakenly file ITR-1 instead of ITR-4 (the correct form for presumptive income).
👉 Want help choosing the right ITR form? Contact our team here
🕓 10. Last-Minute Filing
Waiting till July 31st to file taxes = stress, mistakes, and penalties.
Start early and stay safe.
✅ What Freelancers Should Do:
- File ITR-4 correctly
- Track income and expenses monthly
- Pay advance tax on time
- Get professional guidance from Amiko Finserv
📞 Need Help Filing Your Freelancer Tax Return?
At Amiko Finserv, we specialize in tax filing, GST registration, and compliance for freelancers.
📲 WhatsApp: [9718282653]
📧 Email: amikogroup.in@gmail.com
🔗 Contact Us
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Don’t make these costly tax mistakes – some can cost ₹1 lakh or more!