Best way to minimize taxes as a freelancer in India?
What are some smart ways in which to minimize tax liabilities as a freelancer? Should I look at forming an HUF, sole proprietorship, PLC? Use Case - I am looking at remote opportunities with US startups and many of those pay their overseas teammates as independent contractors; not as employees. In such case where CTC > 40LPA fixed, what are some of the best tax saving hacks that one can execute? TIA!
Register for a sole proprietorship, as it’s under 75L/yr, you can opt for 44ADA, where you only need to pay taxes on half of your income. Also since above 20L/yr, you’ll also need to register for GST. Speak to a CA to get the idea for filings and registration, at max this should cost you 500 bucks a month ish
furious
Stealth
a year ago
Thanks. Will definitely explore this
RightPatch
Stealth
a year ago
Just expanding on this, technically you don't need to form a company such as sole proprietorship. You only need to register for GST and file nil returns for any income from abroad.
Not PLC for sure has it’s own compliance & secretarial costs, can look at proprietor/partnership based on other sources of income.
In partnership you can claim benefit and split the profits and file the ITR accordingly
