Hello, and thanks in advance for your help.
I am a freelance photographer. I don't own a photo-studio but do all post shooting work (photo editing and so on) from home. My gross receipts in 2010-2011 were in excess of Rs. 5,00,000. I have one bank account and my income and expenses (personal and business) are all reflected in the bank statement. I maintain "books of accounts" in GNUCash, a free accounting software. I have bills for all non-cash business expenses. I use ITR-4 for filing returns.
Queries:
1) Can I deduct electricity, telephone and mobile bills as business expenses? Or a percentage of these?
2) I know that I should maintain a separate bank account for personal expenses... But since I have not done so, for the purposes of tax returns, are all my personal cash withdrawals to be shown as "Cash in hand" in my IT return?
3) How do I deduct cash transactions (no bills) for things like food etc. spent while I was shooting?
Thanks, once again.
Amit
CAclubindia
