I am an independent contractor (resident in India) for a US company working from India. I get paid every week by transfer of USD to my Indian Bank account. Conversion to INR happens the day on which credit is received from US. They don't deduct any TDS. Question 1 :: Should i declare this as income from business/profession in India and pay tax? Question 2 :: From the gross income received ,can I deduct expenses paid in India (like depreciation on laptop, electricity, stationery, etc.) ?
Hi,
1. Yes, you should show it as business income and pay tax on it.
2. Yes, you can deduct all business related expenditure from this income. Alternatively, you may also choose an option of presumptive taxation wherein directly 50% of your income will be deemed as your profit. However, this option is subject to certain conditions.
Further, there may also be requirement of registration under gst if the income exceeds INR 20 lacs in a financial year
Dear Sir,
Hope you are doing well !!
1. Yes, you can declare this as income from business/profession in India and pay tax.
2.Yes, you can deduct all expenses related to your business.
Thanks & Regards,
Payal Chhajed
Yes you need to show it as your business income and then you can deduct your business expenses from such income.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- Might be I am wrong but I am assuming that you are rendering services related to the software development, design or consultancy. People generally used the term contractor even for specified professional services. If I am right then below are the tax implications and other compliances.
1) Under GST, it will be export of services and the registration is mandatory once the turnover exceeds Rs.20 lacs but you are not required to pay GST after applying LUT.
2) Under Income tax, upto Rs.50 lacs turnover you can pay tax on 50% of the turnover or if the actual percentage is less than 50% then get the books audited.
Thanks
Dear sir, Since you are a resident person, any income received in India or accrued in India is taxable in India.
You are earning business income ( section 28 of Income tax). So you can of course claim expenditure to earn that income.
So on net profit you should pay tax after claiming all deduction.
Hi
Yes, you have to declare this income as business income, you can claim expenses for the same.
Hope it helps
Yes this income is definately subject to tax in India. You should declare this income in your tax filing. Also, you should check whether any advance tax liability arises on this income.
Yes you can claim expenses incurred to earn this Income and pay tax on net income.
Hello Sir,
1. Yes, you should declare this as income from business/profession.
2. Yes, you can deduct expenses paid in India in relation to business.
Hello,
1. Yes, you should declare this income as business income and pay tax accordingly.
2. Yes, you will be allowed to deduct business-related expenses. Otherwise, you can use the presumptive taxation scheme as applicable to you.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
1) Yes its your lawfully income in india and you must declare and pay tax thereon
2) Yes you can claim all business expenses and only net off amount will be subject to Tax.
Also in given case you can claim DGFT Benefit wherein additionally you can claim 3% - 5% annually on your foreign amount inflows.
Yes, you must declare this as Profits and Gains from Business/Profession.
and Yes again, all your expenses relating to your business will be deductible.
