Hello,
I am freelance SEO and working online from my home. My estimated gross reciept for current financial year is around 12 lakh. Since, all my clients are from outside India I dont have to pay any service tax. But I have doubts about Income Tax returns -
My profession will come under Technical consultant as mentioned in Sec 44A and since my Gross receipt is less than 15 Lakh , There is no need of maintaing account books .
Does it mean that I dont need to have any records of my cash expenses as long as I am showing profit of more than 8% ?
In simple words - If gross receipt is 12 lakh, I have proof of expenses of 4 lakhs ( in terms of paying sub-contractors, internet bills, computer etc) and I show 3 lakh just as cash expense , do I only have to pay tax on remaing 5 lakh as it is much more than 8% .
It all looks so simple to be true because my accountant just told me this and I dont understand why no tax officer is going to ask about cash expenses as long i am showing income more than 8%.
I hope you are getting my point. Thank you for your reply in advance
CAclubindia
