New Delhi, Aug. 17 -- Indian freelancers working for US-based IT companies need to understand how their income should be classified, converted into rupees, and reported in the income tax return.

Isha Sekhri, Founder, Isha Sekhri & Associates LLP, explains the key tax, ITR, GST, and foreign-income compliance requirements.

Sekhri noted that freelance IT/software work is generally taxed under "Profits and Gains of Business or Profession."

Specified professionals, including technical consultants and certain IT-related professional services notified under Section 44AA(1), can opt for the presumptive scheme.

Under Section 44ADA, 50% or more of gross receipts is deemed as income. The gross receipts limit is Rs.50 lakh, or Rs.75 lakh where at...