In the diverse and entrepreneurial landscape of Kerala, a growing number of individuals are embracing self-employment. Whether you’re a freelance designer in Kochi, a home-based baker in Thrissur, a YouTuber in Kozhikode, or a consultant in Trivandrum, being self-employed offers flexibility and independence. However, it also comes with the important responsibility of correctly filing your Income Tax Return (ITR).
Self-employed individuals often miss out on valuable tax deductions simply because they’re unaware of what they can claim. Filing your ITR properly is not just about compliance—it’s about maximizing your savings and avoiding future legal hassles. In this detailed guide, we will cover the benefits of correct ITR filing, common deductions available to the self-employed in Kerala, and why seeking professional help can make a real difference.
Who is Considered Self-Employed?
If you earn income by offering services or selling products independently without being on an employer’s payroll, you are considered self-employed. This includes:
- Freelancers (writers, designers, developers, etc.)
- Consultants and independent professionals (legal, financial, engineering, etc.)
- Small business owners or traders
- Home-based entrepreneurs
- Online content creators, bloggers, and YouTubers
- Tutors, coaches, and trainers
Self-employment income falls under the category of “Profits and Gains from Business or Profession” as per the Income Tax Act, and you are required to file ITR if your gross income exceeds ₹2.5 lakh in a financial year (₹3 lakh for senior citizens).
Why Correct ITR Filing Matters for Self-Employed Individuals in Kerala
Many self-employed individuals in Kerala file returns without professional help, which often leads to:
- Missing out on legitimate deductions
- Errors in tax computation
- Incorrect ITR form usage
- Receiving notices from the Income Tax Department
- Delays in refunds or penalties for underreporting
Filing your return correctly means you not only stay compliant with the law but also benefit from all applicable tax-saving opportunities.
Key Deductions You Should Not Miss
One of the major advantages of being self-employed is the ability to claim a wide range of business-related deductions. Below are some of the most common and powerful deductions:
1. Business Expenses
You can claim expenses that are directly related to running your business or profession. These include:
- Office rent or home office expenses
- Electricity and internet bills
- Software subscriptions
- Travel and conveyance for business
- Advertising and marketing expenses
- Phone bills
- Repairs and maintenance of office equipment
2. Depreciation
If you have invested in laptops, cameras, furniture, or other equipment for your work, you can claim depreciation as per the rates provided in the Income Tax Act.
3. Professional Tax and Licenses
Professional tax paid to the local authority and other fees related to professional licensing can also be claimed.
4. Bank Charges and Interest on Business Loans
Charges such as bank fees or loan interest incurred for business purposes are deductible from your gross income.
5. Presumptive Taxation (Section 44ADA/44AE)
For small professionals and businesses with turnover below ₹50 lakh (professionals) or ₹2 crore (businesses), the government offers a simplified presumptive taxation scheme. You can declare a fixed percentage of your income as profit without maintaining detailed books of accounts.
Other Personal Deductions You Can Claim
In addition to business expenses, you are also eligible for deductions under Chapter VI-A:
- Section 80C: Life insurance premiums, PPF, ELSS, tuition fees, etc. (up to ₹1.5 lakh)
- Section 80D: Health insurance premiums
- Section 80E: Interest on education loans
- Section 80G: Donations to approved charitable institutions
- Section 80TTA: Interest on savings accounts (up to ₹10,000)
Which ITR Form Should You File?
For self-employed individuals, the correct ITR form depends on your income type and tax treatment:
- ITR-3: For self-employed professionals and business owners maintaining books of accounts
- ITR-4 (Sugam): For those under the presumptive taxation scheme (Section 44ADA/44AE)
Using the wrong form can result in rejection or delayed processing. That’s why expert filing services are recommended to ensure accuracy.
Why Self-Employed Individuals in Kerala Should Choose Expert Filing Support
Filing your ITR correctly as a self-employed person requires attention to detail, tax law knowledge, and familiarity with deductions and schemes. Here’s why hiring a professional helps:
- Accurate tax calculations: Avoid underpayment or overpayment
- Claim every eligible deduction: Maximize savings and reduce tax liability
- Use the right ITR form: Based on your exact profile and income
- Error-free submission: Ensure compliance with CPC and Income Tax Department norms
- Get faster refunds: Properly filed returns are processed faster
Trusted ITR Filing Services in Kerala
If you’re self-employed in Kerala and want reliable assistance, consider OurTaxPartner.com. With a dedicated team of tax experts, they provide customized filing solutions for freelancers, professionals, and small business owners.
Why choose OurTaxPartner.com?
- Tailored services for self-employed individuals
- Detailed review of your income and deductions
- Help with choosing the correct ITR form
- Easy document submission via email or WhatsApp
- Compliance with the latest tax laws and deadlines
- Affordable pricing with no hidden fees
Explore their services and book your ITR filing today at: www.ourtaxpartner.com/filing-service/income-tax-efiling/
Conclusion: Don’t Let Deductions Go to Waste
As a self-employed professional or entrepreneur in Kerala, you work hard for every rupee you earn. Filing your ITR correctly ensures you don’t pay more tax than required and avoid future complications with the tax department. From claiming your rightful deductions to complying with government norms, expert assistance can help you file smarter and save more.
Don’t miss the opportunity to optimize your tax returns. Get expert help, stay compliant, and take control of your finances with OurTaxPartner.com today.
