Guys now as everyone knows , its time to file a income tax return, I m in India So now the question is all my income is from doing various online jobs selling resell products, article writing, forum poster, websites, graphics. I do recieve payments of around 1$, 2$,5$ etc in my paypal. Like this there might be around more than 300 transactions and as you people know that buyers do not write a note or subject for which they send the payment. So my question is what am i suppose to show to income tax department while filing a return for my paypal payments. N e answers appreciated.
i guess, you can collectively say that you earn money by doing online small jobs..no need to go in detailed stuff..
Hi, The best way to take a print out of all the transactions in terms of currency conversions in INR (Indian Rs.) you received. Also, make sure you keep a Word/Excel document of all your transactions with you. This you should provide to IT officials only if they ask for it. The document should contain all client names, there given project names along with the amount agreed for the work, the currency conversion rates for that transaction instance, any other deductions like paypal fees, reversal fees etc should be noted down and lastly the amount you received in your bank. If you do any local jobs you should also include those details. If you do support any bank wire transactions keep the photocopies of your all the bank passbooks and then consult any good Chartered Accountant for processing the IT Return Filing. He will be in better position to help you in this regard. Remember, if you sell any tangible goods via internet then you are liable to pay Sales Tax. Otherwise, the freelancers or any web service providers in India are liable to pay Professional Tax (which is applicable for all) , Income Tax (which is applicable for all) and Service Tax ( only if your annual turnover is greater than 8 lakhs) Hope this helps. Regards