I couldn't find any other appropriate forum to post this so here it goes.. Do i need to pay income tax if im a student and earning online from cpa,ppc networks? Yes, my income exceeds little over 1.6 lakhs/year and ive got a pan card.I'm a indian citizen.
How do you withdraw your earnings? Paypal ? check? in both cases your income is boldly shown in your bank account. If it isn't too much, dont bother, because every deposit in your bank is not always income, but if it is more than taxable, consult a C.A.
I get direct wire deposits in my bank every month, NO check or paypal.If my income exceeds than 1.6 lakhs this way then do i need to pay tax?
Once your total income exceeds the minimum taxable income, you have to file an IT return - irrespective of whether you have a tax liability or not. You can reduce your tax liability by making investing in any of the tax saving instruments. Is this 1.6 lac your total revenue or your final profit figure? If it is just your revenue, you can deduct various business expenses from the figure to get your final taxable income.
Thanks for reply. Thing is im just a student, and my earning is all online ( ppc,cpa) and it is little over 1.6 lakhs.All my payments go directly into my bank viz wire every month. My expenses are only hosting fees -every month, so can i deduct it from total revenue?
I didn't said that you have to pay tax. You can still save tax, but certainly need to file the IT return. A good C.A. may help to avoid paying tax in the end.
If your income is little over 1.6 lakhs then why don't you invest in below given to avoid tax and get tax benefit under section 80 c ? DON.
If your earning is more than 1,60,000 then your earning is taxable though you are paying for hosting and those can be claimed as expenses though how it needs to be claimed you need to check with a chartered accountant who can better guide you. As the money is directly coming to your account and you can face issues later from the IT department.