The most comprehensive comparison of tax savings- Contractor vs Salaried person

[myliagirl]

@tomwedding Do you recommend trying to file taxes by myself if one falls in the category of contractors making under 75L?

Could you share some resources or guides that might help us do that by ourselves?

Reason for asking js my family CA is annoying as hell and I feel I have the time and bandh width to file my own taxes at this stage since I’m barely earning above 10L even lol

 

[tomwedding]

@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 a value to reducing the risk of non-compliance for you AND also taking a task off your plate, what would you assign?

Lastly, you are not bound to your family CA, so it might make sense to look for a better CA than to take up more tasks into your plate, especially when they are not revenue generating.

 

[natalijaasbj]

@tomwedding What about GST registration? As far as I know, you need to apply for GST registration if your turnover threshold reaches 20 lakhs. link. Hence, add 18 percent out of pocket or bill the company 18 percent. Considering this, can you add some details in your original post? Thanks.

 

[bengreenwald]

@natalijaasbj You will need GST if your turnover is above 20 lakh, and LUT if you have foreign client. But i thought the max limit was 50 lakh to claim 44ADA, is this changed to 75 lakh now?

 

[natalijaasbj]

@bengreenwald Yes, the 44ada limit is increased to 75 lakhs.

 

[bengreenwald]

@natalijaasbj Oh good to know this. I have been trying hard to limit myself under 50 lakh for the last 2 years without knowing this. Thanks!