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PayPal Transactions Screenshots as Income Proof for Income tax?

Discussion in 'PayPal' started by Axus Technologies Inc., Mar 11, 2010.

  1. #1
    Hi...

    I mostly receive money through Paypal and Western Union and Wire Transfer. The total incoming money is around 25 lacs for this April 2009 - April 2010. :(

    My CA asked me to bring all the income proofs and expense proof, so that he can show most of it as Business Expenses and then let me just pay around 80k - 1 lac as tax.

    So my question is, shall I just take all the PayPal screenshots and make a whole archive and send it to him ? So, that will sum up as my total income proof.
    And for expenses, all of my bills like buying LCD to dinner in hotels, bla bla bla ?? So, all those are my expenses considered by IT, right ??
    SEMrush
     
    Axus Technologies Inc., Mar 11, 2010 IP
    SEMrush
  2. Freelance_rkm

    Freelance_rkm Peon

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    #2
    Im sorry but dinner in hotel. :D
     
    Freelance_rkm, Mar 11, 2010 IP
  3. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #3
    Lol! Anything that goes out of my pocket in my name are not counted as expenses ??
     
    Axus Technologies Inc., Mar 11, 2010 IP
  4. Freelance_rkm

    Freelance_rkm Peon

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    #4
    in a general sense, yes.

    But for calculation of tax do the following:

    Gross income - expenditure (all expenses related in order to earn that income) = Net income/ net proft. Now tax will be calculated on the basis of your net income/ net profit.

    e.g. if you are a photographer, you can show purchase of camera, lenses, tripod as your business/ professional expenditure. but you cannot show this as your expenditure if you are a writer.
     
    Freelance_rkm, Mar 11, 2010 IP
  5. linkstrade

    linkstrade Active Member

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    #5
    first u tell me how u earn lots of money??? 25 lack yearly!!!, its big amount
     
    linkstrade, Mar 11, 2010 IP
  6. seogoogle

    seogoogle Well-Known Member

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    #6
    Well he is running a company ;) and I don't think we can show hotel dinner expense :D
     
    seogoogle, Mar 11, 2010 IP
  7. mac83

    mac83 Active Member

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    #7
    Well normally in most countries only business expenses are allowed for deductions. Your business expenses could be anything like your phone bills, internet bills, travelling, meeting expenses, lunch and dinners expenses (if those are for a business purpose... Dinners with clients etc.) and many others... Just make a list of all expenses you made and tell your CA. He will guide you further :)
     
    mac83, Mar 11, 2010 IP
  8. olddocks

    olddocks Notable Member

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    #8
    Axus - first of all! congrats on your earnings :) thanks for your PM. i guess you are using company to receive money, so no need to worry at all. Enjoy :)
     
    olddocks, Mar 11, 2010 IP
  9. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #9
    Its not a big amount, when you are making your days and nights together to make it.
    Thanks bro. And yes, problem is , I have been using my premier account and my personal SBI account and havent opened the Business paypal connected to company account. So, CA said, it cant be a company income this year and has to be a freelancer income wise.
     
    Axus Technologies Inc., Mar 11, 2010 IP
  10. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #10
    Damn man, you are a life-saver!
    I was going to print like 3000 slips and credit card bills tomorrow. He he he. U saved my printer ink money! :D

    I got the perfect point now. Well, I can show all this as Business Expenses, since I have a big home office and I can consider all the buying as Business Expense. Cheers.

     
    Axus Technologies Inc., Mar 11, 2010 IP
  11. emiley

    emiley Active Member

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    #11
    I am a writer and I have a team as well.
    Can I show the payment receipts(bank receipts) because whatever amount I withdraw from Paypal to my bank account, I don't keep that.
    I distribute that to my writers. My question is; do I need to pay tax on all the amounts I'll receive at the end of the year ?

    Any help would be appreciated!
     
    emiley, Mar 11, 2010 IP
  12. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #12
    All of that can be decucted as BUSINESS EXPENSES dude!
    You dont need to pay taxes on that. You have pay tax only on your profit.
     
    Axus Technologies Inc., Mar 11, 2010 IP
  13. Freelance_rkm

    Freelance_rkm Peon

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    #13

    You do not need to pay tax on all your gross income, but definitely on Net Income.

    I am a writer with team as well.

    Find your net income

    Gross Income - Expenses (payment to writers, electricty, telephone, books, mags, broadband, pc maintenance etc) = NET Income. Now you have to pay taxes on net income only, not on your gross income.

    And I have money receipts for all my expenses like payment to writers, electricty, telephone, books, mags, broadband, pc maintenance etc.
     
    Freelance_rkm, Mar 11, 2010 IP
  14. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #14
    So my question is, can I just take all the PayPal screenshots and make a whole archive and send it to him ?
     
    Axus Technologies Inc., Mar 11, 2010 IP
  15. emiley

    emiley Active Member

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    #15
    Okay!
    Thanks for the post.
     
    emiley, Mar 11, 2010 IP
  16. Freelance_rkm

    Freelance_rkm Peon

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    #16
    Instead of screen shots, why don't you send the bank statements? I hope that all the money was deposited in your bank ac only.
     
    Freelance_rkm, Mar 11, 2010 IP
  17. poinplusplus

    poinplusplus Greenhorn

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    #17
    giving screenshot one by might cost you time.
    if he only required some id, give him transaction id should be fine
     
    poinplusplus, Mar 11, 2010 IP
  18. Biggboss

    Biggboss Guest

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    #18
    my god how could u get so much money in your paypal any suggestions !!!!
     
    Biggboss, Mar 12, 2010 IP
  19. Axus Technologies Inc.

    Axus Technologies Inc. Peon

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    #19
    Hmm, but what if they ask for Income Source proofs ??

    Nope, my wife can do that. She does all of my accounts.

    Dude, dont you think, thats a stupid question?
    Answer is, we provide hardcore Joomla and Magento Services to our clients in US and Australia and for that, we invest 22+ hours in our dailylife. Do you think, you can do that ? If yes, then do that and you will make double of it. Its not at all a big money.
     
    Axus Technologies Inc., Mar 12, 2010 IP
  20. seogoogle

    seogoogle Well-Known Member

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    #20
    I don't think you have to pay more then 10k this year

    This year submit less next year take care of that

    as you have you saving account and in saving account upto 10 lakh transaction allow

    First check your bank statement how much you receive and how much you spend ( salary, bills)



     
    seogoogle, Mar 13, 2010 IP