Indian Webmasters Do You Pay TAX please come In

Hello guys,

Iam an Indian and i started earning some good money from Net now iam just worried that how should i show it to Government and how should i pay TAX ofcourse i have Paypal but if your income is from Google Adsense then you can show receipt from Adsense as proof of payment received to Government but when my income is by some other source like by selling ebooks,selling stuffs,and all which do not get me receipt then how should i show it to Governmet?

Please help me out...

and do you pay tax?

 

If things have not changed during the last 12 hours, with Paypal, you can use the 'History' tab and list out all your sales for the tax year and print that out.

 

Ok so you mean i do the following

1. I print out all transactions
2. Fill the return
3. And pay the TAX

But what if Government asks me for what i got the payment?

 

Technically speaking, when you sell things through Paypal, you should get your customer use the 'Send Money' method to send you money. What you need to do is for you to use the Request Money or Paypal Invoice method to receive money. This way you can determine what the payment is for as you will be able to add the description of what is place on sale. Keep a copy of the invoice for each of your customer.

Alternatively if you use a Buy Now button, you can add a descriptive product name for each button, each time someone pays you you will get an email which comes would include that description. That should be sufficient to tell what the payment is for.

 

Great thanks for the information

 

Interesting thread,i will keep an eye on this thread.

 

show ur bank statements also Without income u can't get good balance. and hire some accountant to do all that for you.

 

I think i should hire an accountant...

I contacted one CA he stays near my house he said this please dont laugh after reading

I :I earn online i want to know how to pay TAX for it
CA : How you earn?
I : I sale site and all
CA: Can you teach me?
I : I want to know how to pay TAX and fill return for it
CA: Just fill the amount and show the receipt of your payment received
I : I dont have receipt
CA: Sorry then i too dont know about it



EDIT:

Finally got it how it works...

Follow this steps if you want to show to government that you earn and you want to pay TAX

1. When you sale something send an money request using paypal or ask your buyer to add description on what he is sending
2. Take printout of all transactions
3. File them
4. Fill the return it is a form where you show all income and expenses

Patern of TAX:

Income below 1,50,000 - 0%
Income between 1,50,000 to 3,00,000 - 10%
Income between 3,00,000 to 5,00,000 - 20%
Income above 5,00,000 - 30%

I recommend you to show it as Professional earning so that if you earn 800,000 in a year and you spend 7,00,000 as your expenses then you wont need to pay TAX.

If you show it as Side Income then you will have to pay tax for 8,00,000 which will be 2,40,000 ooops better go for first option

I think this helps all Indian webmasters

 

lolz... i tell you what you can do... hire some good accountant who can do your a/cs on computer like tally.

take print out of all statements from Paypal. And also use bank statements to do accounts.

For ad-sense you can provide that receipt which you get with cheques every time.

while fill return u can provide your a/c balance sheet

 

@111Toxicity111 , from where did u get those figures?

 

Hello,

Account balance sheet is not enough we must show to Government for what we got this money as we are not registered company so we need to provide some details...Better option is to get paypal transaction print out and we should ask buyers to give full description of it while sending payment it may be helpfull for us to get white money else our money will be considered as Black Money lets make India improve by making our money white as if you have PAN card and you dont show income then you will be in stats of poverty line Let get India developed

 

What do u mean by that?

 

There is no need to show any proof or receipts.. Government dont require any. Just fill a simple form on how much you earned for the whole year..
Add all the earnings like adsense, paypal, bla bla.. and file the return.
Keep the earning records with you to show if someone asks ever.
A paypal yearly statement is enough.

Indian CA's are unaware of internet income laws. Yes you are right, they start asking "How you earn, teach me" instead of helping us.

This is what I do/think... I am not a CA or have any financial knowledge..

 

agree with meethere

no need to give proofs statement is enough no need for description. what ever we receive is part of income

 

cool

@getjimmy When we get PAN card government consider us as Self Dependent and not as Dependent so if you dont show income and if you dont show that you are earning then you will be considered as Unemployed our Indian stats says that lots of people are unemployed but really they do not show that they work for escaping from paying TAX..There may be other reasons too...

1. No proper knowledge on how to fill returns and all (We are facing it now )
2. Not willing to pay TAX
3. Over charge make people to avoid TAX and all there money become Black Money...

Thanks

 

agree with you

 

Your username makes me laugh pankajchodha

 

1. Find out a reputed CA in your area/town.
2. Speak openly to your CA, never hide anything from him.
3. Explain the type of business you are into.
4. Say it, you make websites, sell ad space, design, hosting, web services.
5. Entire payment you receive is in US dollar which is into paypal account.
6. When you withdraw the amount, you receive it in Indian Rupees.
7. Entire amount/revenue is in cheque or direct deposit which is White Money.
8. At the end of the financial year, the bank account statement are given to the CA.
9. CA files the Tax for you to the government.


-- Feel free to ask more doubts on the thread.

 

what type of business to select from the list the form has ??

 

Internet/Online Business!

Which form are you talking about, I when was 18 just had to tell my CA what I was into. He managed everything, I just had to sign the documents.

There are a lot of ways to save taxes from online income, what exactly is your question.