You can take the benefit of Presumptive taxation depending on the nature of business.
How to calculate and pay tax FY 2018-19, AY 2019-20
Hi, My total income from Adsense is 424K for 2018-19 FY, and expense rs 2600(HDD,KB,mouse)+5180(internet)+8000(medical expense on dependent). Total tax payable: xxx Edu cess: xxx interest: xxx Total: I work from home, can deduct house rent and electricity bills too?? Please tell me after all calculation should I pay using challan 280 or fill ITR in e filling or any other method and when I should file ITR? Please explain this is my first time and I don't have any knowledge of Taxes.
Asked 6 years ago in Income Tax
Dear Sir,
Hope you are doing well !!
You should pay the taxes through challan 280 and file the return online.
The due date of ITR filing is 30th July.
However, you can take the benefit of presumptive taxation scheme.
Your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts) under this scheme.
If you are doing e filing first time ,then It is advisable to take the help of CA for proper filing.
All income received thru wire transfer to bank account. To be frankly 8% of 424k is 33920 and 6% is 25440, How much should I pay using 280 challan?
Asked 6 years ago
You need to pay 6%.
Nil
Hello,
Yes, if you use presumptive taxation under sec. 44AD for your business income, you won't be required to pay any tax but it would be advisable to file your income tax return.
The due date for the same is 31st July 2019.
It would be also advisable to consult a CA for your income tax return filing to avoid any errors in your income tax return.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
No tax is to be paid.
Your business income would be deemed to be 6% of the total receipts.
You can't deduct house rent and electricity bill.
Also you can't deduct medical expenses you can show income at 6% or 8% but that would be very much less and you will not be required to pay tax.
You need to calculate actual profit and pay tax @5% on it which is over and above 2.5 lakh and add 4 education cess on tax.
You can pay using 280 challan or first prepare return and pay challan from there itself.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
Please let me know are your services similar to information technology/ software development or consultancy services?
If yes, you can take advantage of presumptive taxation and pay tax only on 50% of the amount received by you.
Tax rate in your case will be 5% on 212k.
You need to pay tax (via challan 280) before filing ITR return.
Please take a Phone consultation for better understanding. We can also assist you in filing your income tax return
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