OK, I am running my online ventures without a company.. Stupid me.. I paid my taxes as other other income.. But now I have 2 checks worth,,,, welll ...very much... Both are in my name. So I cannot say the income is to a business or LLC.. If I paid as otherincome I would have to pay 33% tax.. The income is from sale of websites. Have u sold any websites at 50 K range? How did you show the sale proceeds as for IT returns purpose..? I have the escrow transcations but it shows up as domain name sale? Can I claim it as capital gain tax on domain name? On intangible assets, the period should be 3 years.. I owned the site for only 28 and 33 months respectively. Can I claim it as export? database? I am cluless.. And 33% is a goood chunk.. Looking for GOOD Pointers.. I am talking to a CA but I want to hear your expwerience as well.. I know there are lots of people who does $XXXXXX business here Any clue?
Just talk to CA and he will guide you with all formalities. The tax you have to pay will come after all deductions, not just 33%. Always have some kind of proof to show source of income. (photo copy of checks etc..)
Well, I have same problem here. I too in the business of selling bigger sites and now find problem in putting in the tax format.
I posted thread in the dp and it looks it is lost now. There was no fine reply by any Indian who has experience in this.
I tried to consult someone who has knowledge of taxes. He told that web development can be included in software and technology and if you are selling it outside india it becomes export. This way your income is non taxable and you also gets benefits of DEPB. YOu will need to register at STPR.
You should've received some part of the payment in your brother/sister's name...or someone close to you who doesn't pay TAX. Everyone has a standard no tax limit of 1.6 lakhs in India....Use this limit to save tax Use this scheme in future...! You can show your expenses to show that your net income from website is "Selling Price - Hosting Expenses and all that" That will reduce your taxable income. Also you could invest some money in Insurance to save tax. (If you haven't done that already - 1 lakh limit)