Im working as a online based Freelancer since 1 year. as most of my work comes from outside india and get the payments in USD and then converted into INR and to bank.
I wanted to file Income Tax Returns. i have few queries which would greatly help me:
1. How does a Freelancer such as me can file tax returns
2. Under which category this type of work comes and which form should be applied for the income tax returns
3. Is the minimum limit (prescribed limit as per latest given in budger)of filing IT returns same for any type of work or there is a difference with the type of work im doing (freelancers)
4. Are there any special guidelines or rules for filing returns for the people like me who work as freelancers
Your help in answering these queries would greatly help me in filing the returns as a good and law abiding citizen of my country.
13 April 2012
Dear Rohit It is compulsory for every person, other than a company, whose total income from all sources of income exceeds the maximum amount which is not chargeable to income tax in any previous year ending on 31st March is liable to file the Income-tax Return.
Please find answer of your queries
1.& 2: Since you are working as freelancer your income would be treated "income from business and profession".
3.The maximum limit of income not chargeable to tax under the provisions of the Income Tax Act, 1961 is Rs. 1,80,000/- for assesment year 2012-13.There is no differnce for freelance and they would consider as professionls 4. You can deduct all your business expensese incurred for providing professional service from your revenue and you are liable to pay tax on Net amount (Revenue -Expenses).
If you have any other quires please feel free to write
CAclubindia
