Aishwarya (writer) (29 Points)
28 October 2009My cousin is a self - employed web-designer. She runs her own business. She gets business from overseas or her business is online business. She does not know which tax form is she supposed to fill. She also does not know what is professional tax. Kindly through light on these matters
Thank you in advance
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 28 October 2009
Dear Aishwarya,
Self Employed person is a person who runs his/her own business. as per income tax act, income of self employeed person comes under the head " income from business and profession". As u mentioned in your query your cousin is self employed web designer, she is covered under business and profession. For Businee income ITR-4 should be filed. Form of ITR-4 is attached for your kind refrerence.
Acknowledgement of return may be downloaded by clicking on the below link.
regards,
ratan
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 28 October 2009
Thank u sir for shaing ........................................
CA.SKR
(CA; CS-Final (One Group); DISA (ICAI); Insolvency Professional)
(442 Points)
Replied 28 October 2009
Since, her income is to be assessed under the head "Income from Business & Profession", hence ITR Form No. 4 is applicable.
Satendar Kumar
skr_ca @ rediffmail.com
varun sharma
( CA Final , M.Com)
(87 Points)
Replied 29 October 2009
yes itr 4 is applicable .............The above ans is rite.....
Sunil
(Trader)
(2611 Points)
Replied 29 October 2009
Aishwariya, everyone have replied to you suitably regarding Income Tax. As your cousin is an IT professional, please note that she has to get her accounts audited u/s 44AB if her receipts from profession and or billing exceeds 10 lakhs in an accounting year. This also includes advances received that may not have been billed. Besides this, she has to register under service tax if her turnover in a year exceeds 9 lakhs (for this Act it is money received against her services) and start paying service tax when receipts against services exceed 10 lakhs. Service tax willnot be payable against export of services provided for her service the recepient is outside India and she receives the payment in India in foreign exchange.
No one has thrown light on Professional Tax as it is not a Central Government levy and varies from state to state. Professional Tax is Tax on Employment, Professions, Trades and callings. This is usually levied by State Governments. In some states,they do not levy this tax. In states like Maharashtra, the department is under the VAT (Sales Tax department). In Gujarat, the State Government has committed the revenue from this Tax to the Municipal Corporations and asked them to collect on their behalf from those businesses, professions and employes in their jurisdiction and to use the proceeds for the Corporation. Usually on employment, the employer deducts and pays. Others have to enroll and pay annually according to their activities (VAT dealers, commission agents, insurance agents, professionals, Shop Owners under shops and establishment act, director of company, partner of firm etc., cab owners, rickshaw owners etc.). If you fall under multiple entries (incl. if your tax is deducted on employment), the maximum ceiling currently is Rs.2,500/-). In each head above there will be further rates depending on conditions like turnover for VAT dealers, number of employees for shops and income for others. If you fall under multiple heads, you have to enrol under that head where your rate is the highest. For Rickshaws if they say to pay Rs.x per rickshaw, the highest that is collected is Rs.2,500/-. The ceiling has been fixed by the centre and they may make constitutional ammendments to increase this so that states can shore up more revenues for themselves / their civic bodies as applicable.
Archit Singhal
(Student)
(28 Points)
Replied 29 October 2009
| Originally posted by :Aishwarya | ||
| " | My cousin is a self - employed web-designer. She runs her own business. She gets business from overseas or her business is online business. She does not know which tax form is she supposed to fill. She also does not know what is professional tax. Kindly through light on these matters Thank you in advance |
" |
ITR 4 should be filed
Parul Negi
( CA Final Student)
(175 Points)
Replied 29 October 2009
| Originally posted by :Aishwarya | ||
| " | My cousin is a self - employed web-designer. She runs her own business. She gets business from overseas or her business is online business. She does not know which tax form is she supposed to fill. She also does not know what is professional tax. Kindly through light on these matters Thank you in advance |
" |
yes ITR -4 Should b filed
CAclubindia
