PayPal Transactions Screenshots as Income Proof for Income tax?

Wow, I would be happy to pay 10,000 right now.

THing is the transaction gone way over 10 lacs in this year and right now, that same account has some 12 lacs in it.

 

well as far as the taxes concerned, government doesn't see it this way. They don't reduce your expenses and charge on the rest alone. They always do it on the full. If you are a company, then you can show payment to associates and other related details and get that off your bills, but for that your savings account has to be in the name of the company and you have to have invoices sent in the name of your company, also you need to have signed deeds from your peers.

I suppose you wouldn't have done most of these, coz not many people in India know this stuff. So i suppose all this income would be considered as your sole income and you would be completely taxed for the income. The savings that you could get is the savings that you have personally made on 80C, 80E and other departments. on the max you can save upto 150000. So you will have to pay tax on the rest. above 6 lakhs, you pay 30% of the income. So considering it, you will most likely pay 30% of 20 lakhs as tax to the government. If your CA doesn't tell you this properly, then go look for another good CA. Also if you have some much traction on your savings account. Most likely government is watching your account, so be ready for raids as well.

I am not threatening you but i am just letting you know the facts of the indian government. So register the company and then do all transactions via your company name. That will save your skin, later on.

One personal question out of curiosity, don't get me wrong. I really appreciate you earning 25 lakhs per annum. But i wonder how come website doesn't even show up on google SERP's? Quite weird, so try getting that fixed, do some SEO. I suppose SEO isn't a big deal when you have 25 lakhs to spend.

best wishes for your future businesses.

 

you need a new C.A, everything i mean everything , including dinners bills,, to petrol, to bar bills can be shown as company expense , on that income i would be paying 0 tax [as i would be in loss after all the papers are turned in ] , lol on a income above 2 to 3 crs unrelated to net our company pays some 35k Indian. it's complicated but get right a C.A, even if you have to pay him real good.

 

very well said! i dont know how my CA does it, because considering my income, the tax amount comes above 50k and he brought it down to mere Rs 3000 as payable tax last year. Infact paying your CA some good amount (3-5k) will save you lot of money.

 

Cool said man. +rep added.
Yes, I know this thing after reading som many things on CA Club website.
My CA takes all this very casually , but im serious this time.
As of my calculation, the tax comes around 3.5 lacs , but Im thinking to bring it to 1 lac with the help of a new CA and pay that 1 lac as taxes.

And im getting registered under STPI this time to get all the STPI benefits also. So 0 tax from next year for me . WOOHOO!
And there is no website URL here in my profile. If you want, I can PM you personally, what is our company website and from where, we provide our services.

Right man. Thats the same thing, I have been thinking. If I can get a good CA, then I can just reach 10-15k for my taxes. Damn, I need to find one CA Guru this time.

Yeah bro, thats true. But im already paying 8k to my current CA , but then also he is very casual. And I dont like it to be this way, since I dont want to cheat the Govt.

 

Axus pm me your contact info, you have to pay more than 20.01% (on your gross receipts) in taxes to save from scrutiny, get your self as a sole proprietorship and register your company and pay some amount of money as part of advance tax by this Monday to save your self on interest charges.

A good C.A charges around 9k to 10k, that is what my C.A is charging me

 

So right now you have 12 lakh in your account that doesn't matter I have done above 40 lakh yearly transaction but never kept above 3 or 4 lakh in my account

Invest in share market or property or mutual funds where you can get tax benefit too

Do some investment in PPF - FD's - life insurance and more This will help you to get rebate. I think your CA can make it about 50k to pay you taxes,

If you want to save Tax take care of these things

You married too so you have to use 2 accounts and pay your employee salary by check.

For company Tax is 30% so better register a Firm and in partnership

You can use 2 PayPal account one premier and business, always withdraw less then 50k.

 

@Axus
I am also having the same issue, I am really confused as to I should show Paypal receipts as income proof rather than Bank statement.

They way i see the a person earning above 10 lak per annum will come under the service tax also, so make sure to cut down your net profit under that 10 lak limit. Further by showing paypal records we are telling the government that we are being payed in Foreign currency ( which i guess we will be exempted from service tax) as there is no service tax on payment got in foreign currency.
One more thing is that since you have a SB account dont keep such balances always withdraw money from your account as soon as you receive money, so that if your CA needs expenditure bills you could easily create payment receipts that you have paid to other freelance workers so that your net income becomes even more less

If i have gone wrong anywhere please update me

 

How can I withdraw the money, if I dont have any use ?
Im saving it all for my new BMW 3.

So do you mean, I should not keep more than 3-4 lacs in the amount and scatter the other money in different accounts of mine ?

 

Dude, you need to show expenses like PC/Laptop/ magazine subs/ Broadband/wifi etc. as well as bank statements for income proof. But, even after all that, your income slab would be 30%.. a LOT of money.. Gosh, Govt shud really reduce the tax structure.
Also..if your CA is good..do connect me to him too.. I am looking for a good CA myself.. I am from delhi.. If anyone can help, pls drop me a PM. Thanks

 

yes definitely you should move the money in your wife's name or any accounts which u have not given in IT returns

 

its the same case everywhere, no one knows