Freelance tax questions

ITR 638 views 4 replies

dinoortolani

Student

35 Points Joined August 2014

Hi,

I'm a college student studying in America. I make money through freelancing such as writing for various websites while I also have an online job - all of which pays me on my Indian PayPal account connected to my Indian bank account. I'm not a professional freelancer yet as I'm still studying but I wanted to know if I only need to file returns if income exceeds 5 lacs?

For the assessment year of 15-16, I am pretty sure that I'll need to file a return so based on the info provided, I would have to file ITR4 right? I looked at it and it's pretty confusing as this year was my first time paying taxes.

Lastly, I sold a domain for a profit recently - do I have pay tax on the profit I made and if so, where do I put it?

Any help will be appreciated.

Thanks!

Replies (4)

Madav

Senior Consultant

172 Points Joined April 2014

As per income tax act any income which is received in India will be taxable in India.As you stated that you are receiving the income in India hence it will be taxed in India , if your total income is more than Rs.200000. Also you are liable to file Income tax return if your total exceed Rs 200000/-

If you are in the business of buying and selling domain than it will be considered as your business income otherwise it will be treated as capital gain.

dinoortolani

Student

35 Points Joined August 2014

Thanks for the response, Madav.

I earned 2.7 lacs or so in the assessment year of 14-15 and paid tax on it, but thinking that I needed to earn over 5 lacs, didn't file any income tax return. So are you saying that the 5 lac limit doesn't apply to me? Since I didn't file a return, is this a big problem?

I had a blog which I had no plans of selling initially. I sold it after 2 years and made a profit, so I only pay tax on the profit right?

What if I buy 2-3 domain names to sell for a higher price, would that be considered busines or a hobby?

Anubhav

Chartered Accountant

429 Points Joined March 2008

Hi,

5Lac limit is for all, But in case you have paid tax on 2.7Lac and you want to claim refund of what you have paid as tax you need to file a return.

Pofit on sale of blog will be taxable.

Similarly domain sale will also be taxable.

For any further query PM or mail me.

AJH & CO.

anubhavjain @ ajhco.in

dinoortolani

Student

35 Points Joined August 2014

Also, for freelancers and paying advance tax, I read that "Every taxpayer is required to make payment of income tax during the year itself in which the income is earned" -- does this mean the calendar year or assessment year starting April 1st?

Now I'm an NRI studying in the US. Suppose I come back to India and start full time as a freelancer. I pay my regular tax before July 31st. How do I start advance tax after that? Does everything after April 1st of the same year then count towards the advance tax?

And what if the tax liability (https://www.shoutmeloud.com/income-tax-guide-indian-bloggers-freelancers.H T M L) during the year is less than 10,000 rupees? No tax payment required then?

Lastly, I'm a student - not a professional freelancer - but I do some freelance work. Am I required to pay advance tax? Or can I pay regular tax and still file the ITR4 form?