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@myliagirl " Do you recommend trying to file taxes by myself if one falls in the category of contractors making under 75L? " It depends on your appetite for risk and complexity. It is possible. Do you feel you are confident enough to file them after researching on taxes? If you were to assign...

@myliagirl " Is that particularly hard? " It's a part of business like anything else. However, you have to be mindful of recording expenses on a regular basis. The hardest part is to swallow the jump in taxes.

@itisi @albrtw Apples to apples, the salaried person is able to claim more deductions than a business or profession. This is because there is a possibility to write off personal house rent(HRA) and also write off other benefits received from employer. Another factor affecting the write-offs is...

@resjudicata " Let’s say, If I were to cross 75L/yr, What can I do? " You can start a Private Limited Company and pay yourself a professional fees out of it. You will have to make sure you are compliant, but it can allow you to opt for 44ADA till 75L and have only the actual net profit taxed...

@madoxx Thanks. This made me happy. Took whole Sunday to think through and write

Why this topic is important: This topic is being covered due to existence of presumptive taxation schemes under Indian Income Tax. For our discussion, section 44ADA under the presumptive taxation scheme is relevant. As per section 44ADA, a notified professional(covers IT professionals) is...

@isbel13 If she is salaried, it has to be a perquisite from the employer. If she is self employed, I suggest opting for new scheme and 44ADA. It is possible that she won't be paying any taxes

@valarie51899 It is 12%. At 15%, the money triples. Sorry for the mistake

@achduke No, it means that if you contribute more than Rs. 5 lakhs/year into Provident fund, then interest on such additional contribution(over 5 lakhs) will be fully taxable.

@medengconfused That is not how compounding works. 1. You calculate the value of 1 Rs. growing at 12% per annum in 15 years, ie: Rs. 5.4736 You calculate the value of 1 Rs. growing at 7% per annum in 15 years, ie: Rs. 2.759 Now you divide 1 with 2 ie you get a ratio of 1.9839. This means...

In my previous post, I covered the popular deductions that have been disallowed under the current(new) tax regime. In this post, I will be covering the important deductions that are still allowed under the new tax regime. Here we go: Standard deduction of Rs. 50000 from salary Contribution...

@egspirit When you say agency, I assume you mean partnership/LLP/ Private limited Company. For those, you can file form W-8BEN-E Where “E” at the end is for entities.

Another night another post. These forms relate to exemption from withholding of taxes in the USA(read: US version of TDS in India) and the standard rate of withholding is 30%. Tl;dr: You are required to file form W-8 BEN only and it allows you to avoid withholding in the USA. Plus it is easier...

I am writing about what will happen when people invest surplus, undeclared profits( over 50% @burning___bush 44ADA or over 8% @burning___bush 44AD) and who were sent a notice for the same. I am attaching a case law sheet on this topic at the end. The reason this is important for personal finance...