Freelancing basics in India

What freelancing is

A freelancer works for several clients on separate projects instead of for one employer. You choose your work and your hours, but you also find clients, agree terms, send invoices, follow up on payments and handle your own taxes. Many developers start with small projects while studying or working.

Finding your first clients

• Local businesses: a coaching centre, clinic, kirana shop or restaurant near you may need a simple website, a booking form or a billing tool. Show them a working demo, not just words.
• Referrals: tell friends, family, teachers and seniors what you build. Most first projects come from people who already trust you.
• LinkedIn: post your projects and what you learned, and reply helpfully when people ask for developers.
• Platforms such as Upwork and Fiverr: on Upwork you send proposals to posted jobs; on Fiverr you list fixed services. Competition is high and they charge service fees, so start with small, clear jobs and check their current fee pages.

Fixed price or hourly

To price a fixed project, list the tasks, estimate the hours for each, add a buffer for the things you did not think of (often 15 to 30 percent), and multiply by your hourly rate. Beginners almost always under-estimate, so the buffer is not optional.

Put it in writing

Scope is the exact list of what you will build. Get the client to agree to it in writing: an email reply is better than nothing, and a signed agreement is better still. A simple agreement covers:

• Scope: the features included, and what is not included.
• Milestones: parts of the work with dates, such as design, working app on a test link, and launch.
• Payment terms: the total, the advance (often 30 to 50 percent before you start), the amount due at each milestone and how many days the client has to pay each invoice.
• Revisions: how many rounds of changes are included (for example two); extra changes are charged.
• Code ownership: usually the code passes to the client after full payment. Say whether you may show the project in your portfolio.
• Accounts: the domain, hosting and database accounts are created in the client's name, with you added as a team member, so the client never depends on you to keep the site alive.

Project: Booking website for Sharma Coaching Centre
Total: Rs 40,000 (fixed price)

Advance, on signing            40%   Rs 16,000
Milestone 1: design approved   20%   Rs  8,000
Milestone 2: app on test link  20%   Rs  8,000
Final: live site + handover    20%   Rs  8,000

Included: 2 rounds of changes per milestone
Not included: online payments, mobile app

Invoices and getting paid

• An invoice is a bill you send. It has your name and address, your PAN (and GSTIN if you are registered for GST), the client's details, an invoice number and date, the work done, the amount and your payment details. Keep a copy of every invoice.
• Indian clients usually pay by UPI or bank transfer (NEFT or IMPS). Business clients may deduct TDS (tax deducted at source) and pay you the rest; that tax counts as already paid when you file your return.
• Foreign clients pay through the platform or by bank transfer to your Indian account. For each foreign payment, keep the inward remittance advice your bank gives you (often called FIRA). It proves the money came from abroad, which matters for tax and GST.

Taxes, at a general level

Freelance income is taxable in India, just like a salary. In general: you report it in your income tax return as income from your profession or business; a presumptive scheme exists for some professionals, which lets you declare a fixed share of your receipts as income and keep simpler records if you stay within its limit (whether your work qualifies is a question for a CA); GST registration is needed once your turnover crosses a limit; and export of services, such as work for foreign clients paid in foreign currency, has its own special GST rules.