Rule from foreign income

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Manish

Others

21 Points Posted on 07 November 2014

I am a freelancer recruiter

Now I have a tie up with a company from US.

I have started a proprietorship firm and I raise monthly Invoice for service rendered by me.

I have fix salary as well as incentive and I have to raise Invoice for both.

My queries are:

- do I have any tax benefits as I am earning income from foreign country

- what are the deduction I can get to avail tax benefits

- I am looking for home loan in near future, so what should be my accounting process: actually mine is job but I am not getting any salary slip for same

Replies (2)

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

997 Points Posted on 08 November 2014

To the best of my knowledge, any recruitment through Free lancer is not a employer-employee based recruitment and it is contract wise recruitment and as you said you are raising a Invoice bill to the service receiver for your services, you are regarded as service provider. From Income tax point of view, no specific tax benifits exists for you. Whether you are emplyee or individual service provider you can take repayment of housing loan as deduction u/s.80C up to maximum of Rs.1Lakh.

Anubhav

Chartered Accountant

423 Points Posted on 13 November 2014

Hi,

1.Tax benefit available only when your income gets taxable in US as well and you recieve the certificate for the TDS.

2.Deductions you can claim is regarding investments under section 80C.

I guess you are prepairing your books of accounts.

3.In case your is a job and the relationship of employer employee exists then you will be taxed differently. You can claim the benefit of repayment of home loan.

For any further query PM or mail us.

anubhavjain @ ajhco.in

info @ ajhco.in