Home / Blog / Freelancers in Delhi NCR: GST and…
Delhi · PracticalFreelancers in Delhi NCR: GST and income-tax compliance guide
Designers, developers, writers, consultants and creators across Delhi NCR increasingly work independently for Indian and foreign clients. Here is a compact guide to income tax, GST and compliance for NCR freelancers.
Freelancers in Delhi NCR range from first-time content writers to senior consultants billing global clients. The compliance framework is simple if set up early.
Income tax
| Point | Rule |
|---|---|
| Nature of income | Business or profession – not salary |
| Presumptive option | Section 44ADA (Section 58) – 50% of receipts, up to ₹75 lakh (cash ≤ 5%) |
| Actual method | Receipts minus expenses (laptop depreciation 40%, internet, co-working rent, travel) |
| TDS | Indian clients deduct 10% above ₹50,000 a year; claim from Form 26AS |
| Advance tax | 100% by 15 March (44ADA) |
| ITR | ITR-4 (44ADA, if eligible) or ITR-3 |
GST
| Point | Rule |
|---|---|
| Registration | Aggregate turnover > ₹20 lakh (Delhi, Haryana, UP) |
| Indian clients | 18% GST |
| Foreign clients | Zero-rated export with LUT (conditions: client outside India, payment in foreign exchange, place of supply outside India) |
| Home address | Allowed as principal place of business – see home business registration |
| Returns | GSTR-1 and GSTR-3B (QRMP option) |
Worked example
Example: Arjun, a UI/UX consultant living in Noida, earns ₹42 lakh in Tax Year 2026-27: ₹30 lakh from a US start-up (via bank wire) and ₹12 lakh from two Delhi companies (TDS 10% deducted ₹1.2 lakh). Expenses are about ₹5 lakh.
Income tax (new regime, 44ADA) - Presumptive income: 50% × ₹42 lakh = ₹21,00,000. - Tax: ₹2,00,000 (up to ₹20 lakh) + 25% of ₹1,00,000 = ₹2,25,000 + cess ₹9,000 = ₹2,34,000. - Less TDS ₹1,20,000 → advance tax ₹1,14,000 by 15 March 2027.
GST - Turnover ₹42 lakh > ₹20 lakh → registration required (UP GSTIN, since he works from Noida). - US client: export under LUT – no GST. - Delhi clients: 18% IGST (inter-State, as supplier is in UP and recipients in Delhi) = ₹2,16,000 collected and paid, net of ITC on laptop, software and internet.
Delhi NCR specifics
- If you live in Delhi and serve clients in Gurugram/Noida, GST on B2B services is generally IGST (inter-State).
- No professional tax in Delhi, Haryana or UP.
- Co-working spaces in Gurugram/Noida issue GST invoices – claim ITC if registered.
Foreign remittances and platforms
- Inward remittances need no Form 15CA (that is for outward payments).
- Ask the bank for e-FIRA/FIRC as export proof.
- If a platform (e.g. a US marketplace) withholds US tax, claim foreign tax credit via Form 67 – see DTAA relief.
Common mistakes
- Treating freelance income as salary or "other sources".
- Not registering for GST after crossing ₹20 lakh because clients are foreign.
- Exporting without LUT and then owing IGST.
- Skipping advance tax.
Key takeaway
NCR freelancers should use 44ADA where eligible, register for GST once turnover crosses ₹20 lakh, file an LUT for foreign clients and pay advance tax by 15 March. Our income tax and GST teams set up freelancers end to end.
Official references
Official sources to verify the current text, notifications and circulars:
- CBIC GST – CGST/IGST Acts, Rules, notifications and circulars ↗
- GST portal – returns, notices and advisories ↗
- GST Council – meeting recommendations ↗
- Income Tax Department – Acts, Rules, circulars and section mapping ↗
- Income-tax e-Filing portal ↗
- Department of Trade and Taxes, Govt of NCT of Delhi ↗
- FSSAI FoSCoS – food licences ↗
Frequently asked questions
Does a freelancer with only foreign clients need GST registration?
Registration is required once aggregate turnover exceeds ₹20 lakh, including export of services. Exports are zero-rated: file an LUT and supply without IGST.
Can I use Section 44ADA as a freelancer?
If your work falls under a specified or notified profession (IT, technical consultancy, engineering, architecture, interior decoration, legal, medical, accountancy, film artist, etc.), you can declare 50% of receipts up to ₹75 lakh (with cash ≤ 5%).
Do I need to pay advance tax?
Yes, if your tax after TDS for the year is ₹10,000 or more. Under 44ADA, pay it in full by 15 March.
What proof should I keep for foreign payments?
Invoices, contracts, bank FIRCs or e-FIRAs, platform payout statements and correspondence showing the client is outside India.
Which State GSTIN should a freelancer take?
The State where the principal place of business (often your home office) is located.
Is TDS deducted on payments from foreign clients?
Indian TDS does not apply to payments by foreign clients; foreign withholding may apply under their laws.
Can freelancers claim the ₹12 lakh rebate?
Yes, resident individuals in the new regime get the rebate on total income up to ₹12 lakh, including presumptive professional income.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.