How to reduce income tax
This query is : Resolved
30 November 2013
Hi All,
Can anyone suggest anyone about income tax .
Thanks In Advance
Manu
KidsMitra.com
Can anyone suggest anyone about income tax .
Thanks In Advance
Manu
KidsMitra.com
MEHUL SHAH
(Expert)
02 December 2013
If you are getting income under the head of Salary, no deduction or allowance is available against your Income.
However, you shall be benefited if you show the activity not as salary but as Professional income. As you said, you are paid as contractor so you may claim your receipts as business receipts instead of salary.
However, you need to maintain books of accounts for the business viz Balance Sheet , P/L but it would be helpful as you can then claim all legitimate business expenditure viz lease rent, electricity, stationary, other cash expenses.
You can also claim deduction for the depreciation cost of your Computer and Car.
In case you need any further help, you can mail me.
PS : Also check if the US Company is deducting any Federal Tax. Generally it does and in that case, you are also entitled to take the set-off of the tax paid in US from Indian Tax payable.
Regards,
CA Mehul SHah
9723459572
mehul@raseshca.com
However, you shall be benefited if you show the activity not as salary but as Professional income. As you said, you are paid as contractor so you may claim your receipts as business receipts instead of salary.
However, you need to maintain books of accounts for the business viz Balance Sheet , P/L but it would be helpful as you can then claim all legitimate business expenditure viz lease rent, electricity, stationary, other cash expenses.
You can also claim deduction for the depreciation cost of your Computer and Car.
In case you need any further help, you can mail me.
PS : Also check if the US Company is deducting any Federal Tax. Generally it does and in that case, you are also entitled to take the set-off of the tax paid in US from Indian Tax payable.
Regards,
CA Mehul SHah
9723459572
mehul@raseshca.com
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