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ArticleInterior designers earn income from design fees and project execution, often with materials, contractors and TDS in the mix. Here's how interior designers can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Interior designers earn professional or business income — so presumptive schemes, project-expense claims, GST awareness and advance tax are the levers. Here's how.
Depending on how your work is classified, you may use 44ADA (declare 50% of receipts, within Rs 50 lakh) for design as a profession, or 44AD (declare 8%, or 6% on digital receipts, within Rs 2 crore) for an execution business. Both skip audit and detailed books and often reduce tax for those with modest costs.
If you keep books, deduct your real costs — studio rent, design software and subscriptions, samples and materials, site travel, photography, and payments to contractors and assistants. Larger equipment is claimed through depreciation. These add up across projects.
Where you bill clients for materials and contractor work that you pass on, keep that separate from your design fee so your taxable income reflects your actual margin, not the gross project value. Clean records here prevent over-stating income.
Design and execution services attract GST once turnover crosses the registration threshold, with input credit available on many purchases. This is separate from income tax — track turnover and get registration and input-credit treatment right.
On your personal return, use 80C, the Rs 50,000 NPS and 80D health insurance in the old regime. With income after TDS and no employer cover, pay advance tax in the four instalments if tax exceeds Rs 10,000, to avoid 234B/234C interest.
44ADA (50% of receipts, within Rs 50 lakh) for design as a profession, or 44AD (8%/6%, within Rs 2 crore) for an execution business. Both skip audit and often reduce tax for those with modest costs.
Yes, when you keep books — software, samples, materials, site travel and contractor payments are deductible , with larger equipment claimed through depreciation.
Possibly — once turnover crosses the GST registration threshold. It's separate from income tax, with input credit available on many purchases; track your turnover as you grow.
Designing and executing projects? Write to the firm and we'll sort your scheme choice, GST and advance tax.