If you have multiple streams of income to calculate taxes, you would already get a deducted income from your primary source. Following this, you would have to file quarterly income tax on freelancing, provided your income is above a certain number. Finally, with intraday and investments made, you would have the profits reaped in a fiscal year and pay a certain percentage on the amount generated.
Taxes are a subject that many tend to stray away from. Its where any wrong calculation might lead to penalties from the government. However, when you realize that you have multiple incomes while having a stable job, you would have to pay taxes, provided it crosses a certain threshold. These thresholds are capped yearly, wherein you would have to pay a small percentage of the total income in a single financial year.
But then, this would be feasible for a person who has a stable job and gets income deducted with tax. But for those with multiple incomes other than the primary source of income, things might get a bit different. For them, the calculation might be different and somewhat lengthy. Hence, if you’re someone who has a primary source of income, invests in mutual funds, and even does freelancing jobs, then the tax calculation is done as follows.
Tax calculated for multiple sources of income
Now let’s say that you have a steady income throughout the year. No doubt you would have an income that is deducted from the source, and that money is completely yours. But then, when you try on different ventures such as freelancing, then its where things start to change a little.
When you start freelancing, you would have to pay quarterly taxes based on the work executed. However, from the money generated through freelancing, you can claim deductions through travel, asset purchasing, office expenses, domain registration, apps purchased for testing purposes, and so on. All in all, the things you spend the money earned through freelancing can be deducted, but certain exemptions have to be looked over with a keen eye.
Now with that being said, along with a stable job, you have a freelancing job, and then you invest in mutual funds and even intraday. Well, for intraday, in a financial year, the profits you make through trading, there is a small percentage taken into consideration for taxes. However, it all comes down to the type of mutual funds you are investing in for mutual funds. If you’re into any tax savings mutual funds such as ELSS funds, then you get savings of up to 1.5 lakh rupees. But if you are not, then you would have to pay 10% without any indexation.
Bottom line
All in all, no matter what you do or how many sources of income you might have, calculate all the income that you would have made in a single financial year and then claim deductions based on the investment and allowable deductions that the government exempts. In addition, you can check out several online calculators for taxes to help you figure out the amount you have to pay in taxes.