As per income tax laws, freelancers must pay taxes on their income, just like salaried or business taxpayers. Freelancing income is generated when someone is hired to work on specific assignments for a defined period of time. As a result, the person is paid upon completion and submission of the work. However, one does not become an employee, nor appear on the company`s payroll. A visit to the office isn`t necessary, and the work can be completed at leisure, by the pre-agreed deadline, from a convenient location. Some provisions like the Employees` Provident Fund Organisation, for example, are often mandated by the Companies Act., In a financial year, all taxpayers, salaried, freelancers, and businesses, must pay the advance tax if their total tax liability exceeds Rs 10,000.