Hi Everyone,
I am a housewife and a software developer. Right now I am doing business with some freelancing job sites like odesk and elance and providing software consultancy. I am getting paid in USD currency. Just wanted to know do I have to pay the tax, if yes could you please guide how much I will have to pay in percentage of income.
My age is 26. This is only one source of income for me not doing any job.
Thanks,
Vibha
This is the income from Business & profession and you have to pay the tax on the net income earned by you.Net Income means all the receipts less allowable expenditure.Rates as follows
for resident women ------nil upto Rs.190000/-
10%-Rs.190000/- to Rs.500000/-
20%-Rs.500000/- to Rs.800000/-
30%-Rs.800000/- and above
Thanks & Regards
Karandeep
Hello Vibha,
You'll need to keep track of your income and expences related to your software consultancy. Obviously you'll do all those calculations in INR, as the money that you get in USD is converted into INR here in Indian banks. Then, at the end of a financial year, if you find that your net income (after duducting all busness related expences) is taxable, then you should definitely pay any applicable income-taxes and e-file the ITR-4. By the way, even if you find that your income is not taxable, you may like to e-file ITR4 to the Income Tax Department. The later is called nil-return. That way, you'll keep all your income transparent to the Income Tax Department. It's very simple to do all these online.
Please note that I'm not an Income-Tax expert. I'm telling you these based on my personal experiences as I have been earning money completely online for more than 3 years now.
I hope you find the infomation helpful. At the same time, the experts here will surely come up with their advices.
Useful links:
https://www.incometaxindia.gov.in/home.asp
https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx
https://incometaxindiaefiling.gov.in/portal/index.jsp
- Ashis
Thanks a lot friends for the useful information.
CAclubindia
