Beautician tax

Is she an Indian resident? As you have posted question From Canada.

Sorry but due to some problem the amount you mentioned of her earning has been deleted by the website so could you mention it again? They might have deleted it because they might have found it as phone number.

However to give you broad understanding I would say she only needs to file income tax return if her total income after considering her expense comes above Rs 2.5 lakh a year and this expense won't include expense for studies.

If this is above 2.5 lakh then she can file income tax return under presumptive section and file income tax return even without maintaining books of accounts.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Which country is tax resident for her? India or canada?

Hi

I assume the query relates to India.

The amounts mentioned have been deleted. Please use a proper format and let us know the amount of income on the basis of which we can advise you aptly.

There shall be no income tax liability till annual income is within​ 2.5 lacs. Also, there is no need to file income tax returns too. Let us know if the income exceeds 2.5 lacs. Does she have any other sources of income?

Hi,

Hope you are doing well !!

Could be please repost your query in elaborate manner?

A person need to file tax return if he / she is earning taxable income.  She should apply for PAN and start maintaining records of the income earned and expenses incurred to earn this income. The various expenses could be travelling charges, assistant salary, products bought, courses undertaken etc. 

In case her income is more than 2,50000 she should start filing tax return.  Further there are tax benefits on certain investment made like PPF, LIC, NSC etc.  She can claim deduction upto 1,50,000 from total income and save taxes.  The returns are to be filed by 31 July after the end of financial year.  I suppose she need not worry about past, as taxable income is likely to be below the limit. 

Even though the income is below limit, it is advisable to file returns.  The returns serve as an additional proof for applying visa, seeking bank loan etc.

Hi

If she is resident of India and earnings are above taxable limit .i.e. 2.5 lacs then it s advisable to file return of income.

Assuming beauty services as main source of income,she has to file return under Business and profession income.She can also opt for PTS under 44AD,declaring 8%/6%  as Income and paying taxes accordingly.

There are various deduction available to save tax.

Once you communicate Approx turnover,tax planning options can be discussed in detailed accordingly.

Hope it helps.

Hi,

- She can take the benefit of presumptive taxation and file the ITR-4 without maintaining books of accounts if the gross receipts in the year is less than Rs.2 Cr.

Thanks