Papinder Singh (Taxpayer) (72 Points)
16 September 2020Hi, I am a freelance software developer and I have an internet connection for which I pay Rs. 1000 every month. I use this for both professional and personal purposes, can I deduct this amount from my gross revenue?
Rupesh Soni
(Taxation Consultant & CA final student)
(504 Points)
Replied 16 September 2020
Papinder Singh
(Taxpayer)
(72 Points)
Replied 16 September 2020
Thank you Rupesh for your answer, what about other common expenses like electricity?
Rohit Gaur
(47 Points)
Replied 17 September 2020
Papinder Singh
(Taxpayer)
(72 Points)
Replied 17 September 2020
Thank you for your reply Rohit-ji, how should we calculate the portions? Is it a simple 50/50 divide? If you know the relevant law sections etc., please cite them here.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 17 September 2020
Rohit Gaur
(47 Points)
Replied 17 September 2020
Papinder Singh
(Taxpayer)
(72 Points)
Replied 17 September 2020
Thank you for your replies Raj Doshi-ji and Rohit-ji.
The most objective approach would be to use separate internet connection for business and personal purposes, but since I am just a single person this is not a good option as I have no established work place. So in this case I may determine a reasonable proportion of the costs that go towards professional usage.
CAclubindia
