Side Hustles & Zomato Swiggy Partners: Freelance Income Reporting
- PRITI SIRDESHMUKH
- Sep 16
- 9 min read
Updated: Sep 30
Freelance delivery partners for platforms like Zomato and Swiggy earn income through multiple deliveries, incentives, and bonuses. While this income is flexible and often attractive, it is still subject to taxation under Indian law. Many delivery partners are unaware of the proper way to report their earnings, claim deductions, and ensure compliance with income tax regulations. Filing taxes correctly not only prevents future notices from the Income Tax Department but also helps in claiming refunds and reducing liabilities. With the updated ITR utilities and growing focus on digital compliance, understanding how to report freelance income accurately has become essential for every delivery partner. Platforms like TaxBuddy simplify this process by offering guided solutions, ensuring accurate filing, and providing support for both self-filing and expert-assisted returns.
Table of Contents
Understanding Freelance Income for Zomato & Swiggy Partners
Freelance income for delivery partners includes earnings from deliveries, incentives, surge pricing, bonuses, and tips received. This income is considered taxable under the head “Income from Other Sources” or “Profits and Gains of Business or Profession,” depending on the scale of operations. For most partners operating independently without a business registration, it is treated as income from freelancing or contractual work. Accurate record-keeping is essential; partners should maintain logs of daily earnings, incentive details, and bank statements to support income declarations during ITR filing.
Tax Reporting Requirements for Delivery Partners under Indian Law
Delivery partners are required to report all earnings from freelance work in their ITR. Even if no TDS is deducted, the total income must be declared. Partners with income exceeding the basic exemption limit (₹2,50,000 for individuals below 60) are required to pay tax according to applicable slabs. Filing deadlines must be adhered to, as late filing can result in penalties and interest. Additionally, partners must account for any advance tax payments if their total tax liability exceeds ₹10,000 in a financial year.
How to Report Freelance Income Step by Step
Gather all income statements, bank statements, and payment details from Zomato or Swiggy.
Categorise income under the appropriate head: business income or income from other sources.
Deduct eligible business expenses such as fuel costs, mobile bills, or delivery equipment used for earning income.
Calculate the net taxable income after expenses.
Fill in the ITR form with all income details and verify TDS or advance tax paid.
Submit the ITR online using the Income Tax Department portal or through platforms like TaxBuddy.
Choosing the Right ITR Form for Delivery Partners
For delivery partners and freelancers, selecting the correct Income Tax Return (ITR) form is crucial to ensure accurate reporting of income, compliance with tax laws, and to avoid notices from the Income Tax Department. The two primary forms relevant for delivery partners are ITR-3 and ITR-4 (Sugam). The choice between them depends on the nature of the income, the scale of operations, and the taxation scheme opted for.
ITR-3 is suitable for delivery partners who earn income from a business or profession and do not opt for the presumptive taxation scheme. This form is designed for professionals who maintain detailed accounts of their earnings and expenses. Using ITR-3 allows for reporting actual profits and losses after deducting business expenses, giving a more accurate reflection of taxable income. Delivery partners with significant operational costs, such as fuel, vehicle maintenance, or platform charges, benefit from using this form because it allows them to claim these as deductions.
ITR-4 (Sugam) is intended for delivery partners who qualify for the presumptive taxation scheme under Section 44ADA. Under this scheme, taxpayers can declare 50% of their gross receipts as taxable income, simplifying the filing process for small-scale operations without the need to maintain detailed books of accounts. This scheme is particularly beneficial for delivery partners with relatively straightforward income streams and minimal expenses, as it reduces compliance burden and makes filing quicker and easier.
Choosing the correct form ensures that income is reported accurately and that taxpayers can take advantage of available provisions while minimizing the risk of scrutiny. Filing the wrong form may trigger notices from the Income Tax Department, result in additional queries, or lead to penalties. Delivery partners should carefully evaluate their income type, expenses, and eligibility for the presumptive scheme before deciding between ITR-3 and ITR-4.
Claiming Deductions and Reducing Taxable Income
Delivery partners have several opportunities to reduce their taxable income through eligible deductions under the Income Tax Act. Properly claiming these deductions not only lowers tax liability but can also optimize potential refunds, making tax planning an important aspect of financial management for independent professionals.
Section 80C Investments One of the most commonly used deductions, Section 80C, allows delivery partners to claim reductions for investments such as life insurance premiums, Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificates (NSC), and tax-saving Fixed Deposits. The maximum deduction under Section 80C is ₹1.5 lakh per financial year. By strategically investing in these instruments, delivery partners can secure long-term savings while reducing taxable income.
Section 80D: Health Insurance Premiums Health insurance premiums for self, spouse, children, and parents are eligible for deduction under Section 80D. The deduction limit ranges from ₹25,000 to ₹100,000 depending on the insured individual’s age. For delivery partners, claiming this deduction ensures financial protection against medical emergencies while simultaneously reducing tax liability.
Business Expenses Delivery partners often incur expenses such as mobile data charges, fuel, delivery equipment maintenance, and other operational costs. These business-related expenditures are fully deductible, provided proper bills and receipts are maintained. Deductions for such expenses directly reduce taxable income and reflect the actual profit earned from the delivery business.
Section 80TTA: Interest on Savings Accounts Interest earned on savings accounts up to ₹10,000 per year is deductible under Section 80TTA. For delivery partners who maintain savings accounts to manage business inflows, this deduction provides an additional way to lower taxable income.
Practical Tips Accurate record-keeping is crucial for claiming these deductions. Maintaining organized invoices, receipts, and investment statements ensures smooth filing of ITR and reduces the likelihood of discrepancies during assessment. Additionally, leveraging platforms like TaxBuddy can simplify the process, allowing delivery partners to file their returns accurately, claim all eligible deductions, and maximize their refunds.
By effectively using these deductions, delivery partners can legally minimize tax liability, enhance financial efficiency, and secure the maximum benefit from their earnings.
TDS and Refunds for Freelance Delivery Earnings
Most freelance earnings are paid without TDS. However, if TDS has been deducted on incentives or bonuses, partners should verify the amount in Form 26AS. Refunds are issued for excess TDS paid or tax paid in advance. Filing ITR accurately and early helps expedite refunds. Platforms like TaxBuddy offer guidance to reconcile TDS, calculate taxable income, and track refund status efficiently.
GST Considerations for Restaurant Partners
Delivery partners registered as restaurants or catering services may also need to consider GST. If annual turnover exceeds ₹20 lakh (₹10 lakh for special states), GST registration is mandatory. Partners must report GST collected and paid on services. For individual freelance delivery partners without business registration, GST is generally not applicable unless specific thresholds or registration conditions are met.
Common Mistakes to Avoid While Reporting Income
Accurate reporting of income is crucial to avoid penalties, notices from the Income Tax Department, and delays in refund processing. Many taxpayers make common errors that can be easily avoided with careful attention.
1. Not Including All Income Sources: A frequent mistake is failing to report all sources of income. This includes not just your salary but also incentives, bonuses, tips, freelance earnings, rental income, or any other taxable receipts. Omitting any income can trigger notices from the Income Tax Department and lead to additional tax liabilities, interest, or penalties.
2. Claiming Non-Eligible Expenses as Deductions: Taxpayers sometimes claim deductions on expenses that are not allowed under the Income Tax Act. Examples include personal expenses mistakenly claimed under business or professional deductions. Such incorrect claims can result in disallowance during assessment and may delay refunds while the Department verifies these claims.
3. Filing Using the Wrong ITR Form: Choosing the incorrect ITR form is a common mistake, especially for individuals with multiple income sources. Using a wrong form can lead to the return being treated as defective or invalid, which can delay processing or require filing a revised return.
4. Missing TDS Reconciliation: TDS (Tax Deducted at Source) credits must match the actual deductions reflected in Form 26AS. Failure to reconcile TDS with salary or other income can result in mismatched records, leading to notices from the Department or delays in refunds.
5. Filing Late or Without Verifying Bank Account and PAN Details: Filing after the due date may attract penalties and interest on outstanding taxes. Similarly, errors in bank account numbers, IFSC codes, or PAN details can prevent refunds from being credited and may require additional corrections or re-submissions.
Using TaxBuddy for Seamless Tax Filing
Platforms like TaxBuddy simplify the filing process for freelance delivery partners. TaxBuddy guides users through income reporting, expense deductions, TDS reconciliation, and choosing the correct ITR form. The platform offers both self-filing and expert-assisted plans, ensuring accurate, error-free submissions. Delivery partners can file from a mobile device, receive notifications for deadlines, and track refunds efficiently.
Conclusion
Accurate reporting of freelance income is essential for Zomato and Swiggy delivery partners. Proper income declaration, deduction claims, and timely filing reduce liabilities, prevent penalties, and ensure smooth refunds. For anyone looking for assistance in tax filing, it is highly recommended todownload the TaxBuddy mobile appfor a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both options. Users can choose self-filing for a guided, step-by-step experience using the platform, or opt for expert-assisted plans where a dedicated professional handles the filing. Both options ensure accuracy, compliance, and a seamless filing experience.
Q2. Which is the best site to file ITR?
TaxBuddy is among the best online platforms for filing ITR in India. It offers a user-friendly interface, AI-driven guidance, seamless filing experience, and ensures error-free submission. It also supports both individual and business taxpayers with clear instructions and assistance for all ITR forms.
Q3. Where to file an income tax return?
Income tax returns can be filed on the official Income Tax e-filing portal or through trusted platforms like TaxBuddy. TaxBuddy simplifies the process by allowing direct ITR filing online using mobile or desktop, along with automated checks for accuracy.
Q4. How should I report incentives and tips from Zomato or Swiggy?
Incentives, tips, or any earnings from delivery platforms are taxable as professional income under the Income Tax Act. Report these under “Income from Business or Profession” in your ITR form, ensuring you maintain records for all payments received during FY 2024-25.
Q5. Can I claim fuel and mobile expenses as deductions?
Yes, freelance delivery partners can claim business-related expenses such as fuel, mobile bills, and maintenance costs as deductions under the “Income from Business or Profession” category. Ensure you maintain proper bills and invoices to support these claims.
Q6. Which ITR form should a freelance delivery partner use?
For freelance income, the recommended ITR form is ITR 4 (Sugam) if you opt for the presumptive taxation scheme under Section 44ADA. If not using presumptive taxation, report income under ITR 3 for detailed profit and loss reporting.
Q7. Is TDS deducted on freelance delivery income?
Generally, platforms like Zomato or Swiggy do not deduct TDS on freelance income unless payments exceed ₹30,000 to a single partner per year. Freelancers are responsible for paying advance tax or self-assessing tax liability when filing ITR.
Q8. What is the deadline for filing ITR for freelance income in FY 2024-25?
Freelance delivery partners must file their ITR by September 15, 2025, as they are individual taxpayers not requiring an audit. If you miss this date, a belated return can be filed until December 31, 2025, but penalties and interest may apply.
Q9. Do I need GST registration as a delivery partner?
GST registration is only required if your annual turnover exceeds ₹20 lakh (₹10 lakh for North-Eastern states) or if you provide services to registered businesses. Otherwise, you can file ITR without GST registration.
Q10. Can I file my ITR on a mobile device?
Yes, platforms like TaxBuddy allow ITR filing directly from mobile devices. The mobile app supports self-filing and expert-assisted filing, provides document uploads, auto-calculates taxes, and ensures seamless submission to the Income Tax Department.
Q11. How can I check the status of my refund?
Refund status can be tracked on the Income Tax Department’s e-filing portal using your PAN and assessment year. TaxBuddy also provides real-time updates and notifications about refund status for easier tracking.
Q12. What happens if I file late or incorrectly?
Filing after the due date incurs penalties (up to ₹5,000) and interest on unpaid tax. Incorrect filing may trigger notices under Section 139(9) or 143(2), requiring rectification or revised return submission. Using platforms like TaxBuddy helps minimize errors and avoid delays in refund processing.
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