The foreign companies pay you the exact amount without deduction and the taxes need to be paid by the individual.
Does the section 44ADA really help to save tax? What's the benefit if someone is earning the same amount from an Indian company and the same from a company outside India?
I've read the rule change if you make above 50L. I would like to know from people who are actually paying freelance taxes.
Does the section 44ADA really help to save tax?
Yes, if you are in one of the allowed professions.
What's the benefit if someone is earning the same amount from an Indian company and the same from a company outside India?
Pros: Taxable income is essentially cut into half if filing under 44ADA Cons: No contributions to EPF/PPF. No sponsored insurances, etc. No further deductions on the ½ taxable, so 80C doesn't do anything. Also loans are hard to come by since you're technically "self-employed"
Also you gotta pay advance taxes and all that.
I've read the rule change if you make above 50L.
Since this FY, it's above 75L now.
Thanks for the insight.
Does it mean up to 75L there's no need to manage bills and books?
Software engineer part of the allowed profession? "Export of service" to be precise.
Didn't know that 80C can't be applied on the ½ portion. Was listening to Ankur on YouTube he didn't mention this.
My understanding of tax is as good as that of a middle schooler. The question is obvious, for someone who can't levy HRA, LTA or anything else, how do I pay less taxes?
All I can levy, I think is tax free investments up to 1.5lac.
I have been freelancing since Dec'23. They connected my account details via RIPPLING. They asked me to fill a form (W8-BEN) in which I had to add my PAN.
I pulled 26AS for 23-24 but not seeing anything from this company in there.
Sinc...
hey folks do you declare any side/freelancing income information during return filing?
if your side hustle is over 5L but less than 20L, will you declare or keep it hidden?
