Noe PAN card is mandatory for all Indian Paypal Users. Its a suck for all of us. I'm fearing about the Income Tax Department. I'm only doing freelancing work and getting some bucks from it. I have no any concrete evidence to proof my expenses. How can I save myself from the eyes of Income Tax Department? I'm thinking to use different paypal A/C on the name of my Relatives. Is it work? Any suggestions would be appreciated.
If your income from freelancing is not really huge, why should you worry about income tax? You just have to file your returns without paying anything if your annual income is below the threshold limit! But.. if you are making substantial amount over all, then you better start paying taxes.... my friend! About using accounts in the name of relatives, are you sure about their level of income and that you will need to use their PAN number as well? I hope your income in their name does not put them in jeopardy as well! Regards, RightMan
I think you dont have to worry about an income tax. You can collect bills of fuel and can you can even mention rent of premises for the expenses and refreshment expenses and lots of expenses. So if you are earning small amount dont worry about the tax
paying tax is the duty for all indian dont skip that and i your earning is less than 1.6 lacks per year then there wont be any worry for getting in income tax
Huge means how much? can u please tell me or what is the amount of non taxable amount yearly? please help
I do not think anyone knows about the exact amount on which you have to pay the taxes but offcourse if there is huge amount of money falls in your bank account then it might possible
If you are in India, you will have to abide by the IT rules here. And you better do. For the past year, the slabs for men were : If your income is above 1.6 lacs a year , you need to pay 10% tax on the 1.6l -3l . If you earn above that then you will have to add 20% tax from income of 3lacs-5lacs. So, if say you are a male and your yearly income is 4.5 lacs. If your net expenses in procuring this income - in the form of broadband connections, phone bills and electricity bills (any other you can think of ) is say 40k a year. So, you can easily consider 1.6 lacs + 40k = 2 lacs as tax exempt. Then, you will need to pay tax on the remaining 2.5 lacs. So, upto 3lacs you pay 10% tax. 10% of 1 lac = 10k INR. Then above that up till 5lacs is 20% tax, so for 1.5 lacs you have to pay 20% tax = 30K . In total, you need to pay tax = 40k per year. If you want you can save further by investing upto 1 lac, so, you will only have to pay tax on 1.5 lacs = 30k per year. I am no Tax Guru, please consult a professional . If your income is 4lacs + , it is way more than a great part of India earns , so we will need to rise up to the occasion and pay what we need to , so that our country progresses. And no, the logic of all the money going into neta's pocket's doesn't absolve us from our responsibility of paying tax.
Thanks for great help, in clearing my doubts, i will sure go to a CA and ask for more details....thanks a lot
As a true citizen of a country its obvious that you need to pay tax on what you earn. I dont see any problem paying taxes for what i earn which will make my country prosper.