furious
furious
Stealth

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!

16mo ago
potatomato
potatomato
Fintech Startup16mo

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
furious
Stealth16mo

Thanks. Will definitely explore this

RightPatch
RightPatch
Stealth16mo

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.

Joeytribbiani
Joeytribbiani
Dunzo16mo

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

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