TAX ISSUE !! Please Help

[life2007]

Hello

I am not aware if this question is out of context. However, I thought to ask because there are lot of friendly experts over here to give advice

I am freelancer doing small jobs like data entry, webresearch etc for foreign clients (mainly US). In short, I earn in foreign currency though it gets converted to Indian Rupees while it reaches my Bank.

My query :

1) Which form do I need to file the Income Tax

2) What are the applicable rates/slab for money earned from foreign
sources. I mean any special rule or is it as per existing Indian Income
Tax?

3) Lastly, where do I get the information on an authentic website/books
for the above.

This is because different people comes with different therioes, some
say it is totally exempted because the earning is in foreign source,
some say it is flat 10% while others persist it is same as for any others
in India.

I sincerely expect some response from some of you


Thanks and Regards

Jeet

 

[pkjha30]

Hello

I am not aware if this question is out of context. However, I thought to ask because there are lot of friendly experts over here to give advice

I am freelancer doing small jobs like data entry, webresearch etc for foreign clients (mainly US). In short, I earn in foreign currency though it gets converted to Indian Rupees while it reaches my Bank.

My query :

1) Which form do I need to file the Income Tax

2) What are the applicable rates/slab for money earned from foreign
sources. I mean any special rule or is it as per existing Indian Income
Tax?

3) Lastly, where do I get the information on an authentic website/books
for the above.

This is because different people comes with different therioes, some
say it is totally exempted because the earning is in foreign source,
some say it is flat 10% while others persist it is same as for any others
in India.

I sincerely expect some response from some of you


Thanks and Regards

Jeet

Hi jeet

You are supposed to use ITR-4
You can download pdf copy from here http://incometaxindiaefiling.gov.in/download/newforms/I.T.R-4.pdf

You may be required to maintain account book and get it audited if income exceeds 1,20,000 in assessment year.

As income is realised in Inida and not taxed in the country of origin, it is taxable in India.You are a resident Indian.

Tax will depend on the slab rate minimum of which is 10% then 20% and 30%. education cess is also applicable.

While calculating income you can deduct all your business expenses incurred in the course of your profession.

For more explanation see FAQ
http://www.incometaxindia.gov.in/questionbank.htm#H96

You can file returns online and also pay taxes online.

Hope this gives you some idea to explore.

It is better to ask a CA to tell you how to maintain your accounts and compute income and pay taxes.

 

[life2007]

Dear Sir

THANKS A TON FOR THE VALUABLE INFORMATION.

I must say your remarks and advice has removed lot of doubts. Now I know some direction

I shall further read all the FAQs of the link sent by you, consult a CA and carry on from here. Most of the CAs in my area are just not aware of this type of income, but now I know what to do.

I once again thank you immensely.

Regards

Jeet

Hi jeet

You are supposed to use ITR-4
You can download pdf copy from here http://incometaxindiaefiling.gov.in/download/newforms/I.T.R-4.pdf

You may be required to maintain account book and get it audited if income exceeds 1,20,000 in assessment year.

As income is realised in Inida and not taxed in the country of origin, it is taxable in India.You are a resident Indian.

Tax will depend on the slab rate minimum of which is 10% then 20% and 30%. education cess is also applicable.

While calculating income you can deduct all your business expenses incurred in the course of your profession.

For more explanation see FAQ
http://www.incometaxindia.gov.in/questionbank.htm#H96

You can file returns online and also pay taxes online.

Hope this gives you some idea to explore.

It is better to ask a CA to tell you how to maintain your accounts and compute income and pay taxes.