Income from USA MLM company

HI ,  Currently I am working in India . But I also recieve some income in the form US$ . The amount I get in US$ is as commission from a Multi Level Marketing company established out side India. However, finally the actual amount I receive will be as  cheque  in indian rupees only. I desposit that in my bank account and encash it.

Now my question is how can show this amount in income tax returns. I am ready to pay the tax . Can I show that the MLM commision as business income ?

Please some one answer this to avoid my confusion. Because some times the commision would be more than 1lakh per annum.

Kishore

Replies (7)

Dear Kishore,

                 In ur case, if u r doing ur services in india for the MLM company, then it would be taxable in India. U can show it as ur business income. Reason for the same is that u can claim some deductions for expenses. 

In My Opinion if u r receiving ur  income as professional charges or as Commission then it should be taxable under the head of "Business Income (i.e. PGBP)".

If u r Salaried employee then it should be taxable under "SALARIES"

U may take the income taxable under the head of " BUSSINESS INCOME" and you can avail some % of Income as deduction of expenditure from Income.......

Originally posted by : CA.G.Muguntha Narayanan

Dear Kishore,

                 In ur case, if u r doing ur services in india for the MLM company, then it would be taxable in India. U can show it as ur business income. Reason for the same is that u can claim some deductions for expenses. 

Hi Thank you for your reply. I think I was not clear. Actually my job in india is different that is not related to MLM.  So My income from salaries already I am showing in IT returns and paying tax as per slabs. Now I am receiving commission from MLM company also.  So there is no link to my job and MLM.

Please advise .

Originally posted by : Mayank Kumar Jha

U may take the income taxable under the head of " BUSSINESS INCOME" and you can avail some % of Income as deduction of expenditure from Income.......

 

Hi

Thank you for your reply also. Can You please look at my last update on my question and advise your thoughts also.

 

Kishore.

Dear Kishore,

 Since there is no employer-employee relationsip between u and the MLM company, the amount cannot be taxed as salary. If u r not performing any services for the MLM company in india, but still receive commission in india, its taxable as business income

Originally posted by : CA.G.Muguntha Narayanan

Dear Kishore,

 Since there is no employer-employee relationsip between u and the MLM company, the amount cannot be taxed as salary. If u r not performing any services for the MLM company in india, but still receive commission in india, its taxable as business income

Thank you very much Muguntha . It is clear to me now!.

Regards

Kishore.

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