ITRFiling for InteriorDesigners
Here’s a breakdown of the situation:
1. Total Income Calculation:
The first step is to calculate the total income, which includes both the salary from the full-time job and the income earned as an interior designer. This income can come from consultation fees, project earnings, or any other relevant sources.
2. Category of ITR Form:
Based on the total income and sources, the individual should select the appropriate ITR form. For example, if the income is primarily salary with limited interior design income, ITR-1 (Sahaj) might be applicable. However, if the interior design income is substantial, a more complex form like ITR-3 or ITR-4 could be required.
3. Deductions and Expenses:
ITR filing for interior designers can claim deductions for business-related expenses, such as material costs, travel expenses for site visits, and other relevant expenditures. It’s important to maintain proper records and receipts to justify these deductions.
4. Taxation of Interior Design Income:
The income earned from interior design work considered professional income and is subject to taxation under the head ‘Profits and Gains of Business or Profession.’ This income should be report accurately in the appropriate schedule of the selected ITR form.
5. TDS and Advance Tax:
If the interior design income crosses a certain threshold, the individual might be required to pay advance tax. Additionally, if clients deduct TDS (Tax Deducted at Source) on payments made, it should be accounted for while filing taxes.
6. Form 16 and Form 26AS:
For the salary earned from the full-time job, the individual should receive Form 16 from the employer, which contains details of salary and TDS. Form 26AS should also be checked to ensure that TDS details match the records.
7. Disclosure and Compliance:
It’s crucial to accurately disclose all sources of income, including the interior design work, while filing the ITR. Non-disclosure can lead to penalties and legal issues.
8. Tax Planning:
Proper tax planning can help optimize the tax liability for both the full-time job and the interior design work. This might involve utilizing available deductions and exemptions effectively.
9. Seek Professional Help:
Given the complexity of handling multiple sources of income and deductions, seeking advice from a tax consultant or chartered accountant is advisable. They can ensure accurate ITR filing and compliance with tax laws.
In summary, ITR filing for interior designers with a full-time job should carefully assess their total income, select the appropriate ITR form, accurately report interior design income, claim relevant deductions, and ensure compliance with TDS and advance tax requirements. Seeking professional guidance can simplify the process and ensure proper adherence to tax regulations.
To visit: https://www.incometax.gov.in
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