ashish bista (Student) (55 Points)
02 March 2016Dear Members,
Can anyone tell me the tax tratment of free lancer? My client is providing service like blogger etc. outside india and under which head his income is taxable business or profession or other income. And whether expenses like rent paid, book purchased, depreciation on computer etc are allowed? Please refer relevant provision of income tax also. I couldnot found exact provision in Income Tax Act.
KPPM and Associates
(Chartered Accountant)
(62 Points)
Replied 02 March 2016
Hello Ashish,
The proceeds from provision of such sevices will be eligible for income tax under the head "Profits and Gains from Business and Profession", and yes, all the expenses incurred for the purpose of earning the income shall be deducted from such proceeds to ascertain the income chargable to tax.
As for the sections, yours is a very general case laid out in the applicability section 28(i), while the deductions are allowable according to provisions laid out in sections 30-37.
Hope this was of Help.
Ansari Salman
CAclubindia
