Hello All,
This is my first post in the forum as I need some professional advice and help. Let me clear the scenario in brief.
I was working a better part of last year for a SMB based in Bombay till May 2010. While working there, I started taking up projects part time from Feb onwards for SMB clients based in USA/Australia. These clients paid me by use of Paypal and other online transaction channels for my services in USD. Once the client base was good, I quit my job and started working full time on these projects. My company filed the IT return for my salaried income till Mar 2010 last year. Since then, I haven't paid or filed any IT returns for my business income. Over 95% of the business income has been earned after March to the tune of 35,000 USD till date. Questions:
1) When do I need to fill the IT Returns?
2) The tax is payable on which income - My paypal USDs or the income which comes into my bank account after witdrawing from Paypal?
3) What can I show as business expenses? Majority of my work is for US clients so I never visit them. I don't have an office either. Operate the business from my 2 laptops at home and internet primarily. My major expenses this year have been a purchase of a new car, two laptops bought, invoices for my home renovation and lots of small bills for eating out, purchases of electronic items like printers, pen drives, small budget for my adetc.
4) I currently have income flowing into my prior salary bank account only. Should I start a new savings account for business income/expenses?
5) I planned earlier to open an account by a biz name ="ABC Technologies" but banks require a proof. A CA i consulted personally said "use a shop and establishment act" and apply for "IE code" is it necessary?
This message may be long and would be glad to have professional advice on the same.
Thanks.
CAclubindia
