Hello Indian Users, So much has been written in this forum about this topic, but still no clarity. Any idea what are the current Indian friends doing to pay taxes. I have researched a bit on Income Tax Act. From what I know now, SECTION 80 HHE allows you total exempt of Income Tax if earned in convertible foreign currency. Any further inputs on this from experienced ones for benefit of others including me?? Brief input what section 80 HHE states is given below: (This also includes technical services like data entry, back office operation, call centers, medical transcriptions etc ) Profits derived from export of software (including some of IT Enabled services) are exempt from Income Tax under Section 80HHE of the Income Tax Act.Accordingly, computer software and software developed through on-site, off-shore and physical exports are exempted subject to various provisions contained in Section 80HHE of the Income Tax Act.The definition of "Computer Software" in Section 80 HHE of the Income Tax Act, was further amended during 1998 enlarging its scope. According to this section of Income Tax Act, "Computer Software" means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customised electronic data which is transmitted from India to a place outside India by any means."I.T. enabled services like data entry, revenue accounting, back office operations, medical transcription etc. may now claim 100% tax exemption under Section 80 HHE of the Income Tax ACT. Regards Gopal
Hello NO RESPONSE FOR SUCH AN IMPORTANT ISSUE. MAY BE I AM THE ONLY ONE LEFT OUT KNOWING THE CORRECT THING. COME ON GUYS! AT LEAST SOME OF YOU REPLY PLEASE......
Probably becasue most of the people on this forum either dont pay tax or are uder the age where they have to pay tax. IMHO and Humble Experience.... You will probably find that your tax law is based on wherever you are resident, so if you are resident in India and are selling services which you have to physically perform like programming and you are selling the service to a company or person outside of India, say the US, then you probably wont charge them taxes on the invoices but you will still have to declare that income to your local tax office. Tax law is even more complicated than Internet Law, you should really ask a competant Tax Accountant or Tax Attorney where you are resident. Tax laws in general change almost every year so you need someone knowledgable in the filed of taxes and tax law to give you a precise answer.
Always first check and see what the worst possible case senario is if you don't pay taxes, then care about paying taxes according to that, why feed the pigs?!
see if ur indian living and working abroad u wont pay tax even when u send money to india .... so earning online is also counted as external country earnings no tax is there but i dont have much knowledge in this
Even I really cannot comment on this one, as now since I quit my Job. I am not paying taxes, that is how it goes.