Is freelancing a better solution at times of recession?


#1

Is it advisable to quit the current job at times of recession and get a new job after 5-6 months? My friend gets frequent freelance projects in photography. So he was just wondering if it is a better option to quit his job during recession and finding a new one once things gets better. Meanwhile he can concentrate more on the freelance projects.


#2

The economic growth is low currently. Many people have lost their jobs and it is not advisable for someone with dependents to quit job at this time unless your friend is earning good from freelancing.

Freelancing has not yet caught the fancy of employers in India because most employers prefer permanent employees. Moreover, in the time of low economic growth, companies cut their freelancers or contract workers because there is not even enough work for the permanent employees.

It is, at the end of the day, a subjective call that your friend has to take depending on how much he needs, how much he has in saving, and what does he expect to do after quitting job. Frankly I don’t see any reason why your friend wants to leave the job.
Another very important question is whether the economy will take off at all. Many economists have predicted that Indian economy will grow at a moderate rate of 5% to 6% for next couple of years.


#3

As a freelancer can I use ITR form 4s to file my ITR?


#4

For all working professionals including freelancers, income tax returns should be filled using form 4 and not form 4s. So as a freelancer you need the ITR 4 form to file your income tax return. Keep all the receipts of your expenses and payments with you as they may be needed if the income tax department seeks further information. If your clients are deducting TDS then you will also need to get the details of all such TDs deductions by submit form 16A listing all your TDS deductions.