How ’presumptive taxation’ can help bring down tax payable by a professional
4 years, 2 months ago

How ’presumptive taxation’ can help bring down tax payable by a professional

Live Mint  

Eligible professionals ​​, freelancers and consultants can pay tax on half of their annual gross income. This can be done by opting for presumptive taxation scheme under section 44ADA​ of the Income Tax Act. For an instance, an insurance agent earns income by way of commission and, hence, she cannot adopt the presumptive taxation scheme of section 44AD​ of the Income Tax. Without presumptive taxation, the freelancer can claim tax deduction on work-related expenses, so her taxable salary would be ₹38 lakh. Using Presumptive Taxation, the freelancer's taxable income will be 50% of total annual income equal to ₹22.50 lakh.

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Presumptive taxation scheme for professionals: What is it, its benefits and who can avail?
1 year, 5 months ago

Presumptive taxation scheme for professionals: What is it, its benefits and who can avail?

Live Mint  

People engaged in business or professions are required to maintain regular books of accounts, which can be a time-consuming, costly, and tedious task. Let us understand the presumptive taxation scheme for professionals under Section 44ADA of the Income Tax Act. Section 80CCD – Contribution towards NPS Section 80D – Health insurance premium paid for self, spouse and children, and separate …

Tax implications of moonlighting you must know
2 years, 3 months ago

Tax implications of moonlighting you must know

Live Mint  

Moonlighting means taking up another job while still in employment with an organization. The second job is usually without the employer’s knowledge and hence the income earned from moonlighting can lead to tax complexities that the taxpayer must be careful about. For instance, if the moonlighting income is received as salary, both the employers will consider standard deduction of ₹50,000 …

Freelanced along with a job? You can still claim ₹50,000 standard deduction
3 years, 2 months ago

Freelanced along with a job? You can still claim ₹50,000 standard deduction

Live Mint  

Outbreak of covid-19 pandemic last year resulted in job losses across sectors. We answer three important questions related to freelance income tax filing as you get ready to file your ITR. However, if you have worked a full-time job, you can claim the standard deduction for the salary income. Even if someone has had a job for one month in …

Income Tax Return for AY 2020-21: How freelancers can file ITR?
4 years, 2 months ago

Income Tax Return for AY 2020-21: How freelancers can file ITR?

Live Mint  

Income tax rules for a consultant or freelancer are slightly different from the income tax rules for a salaried individual. Filing ITR-4: Here's how presumptive taxation benefits a tax payer As a freelancer or a professional, you can pay tax on the estimated income. Without Presumptive Taxation, the freelancer can claim tax deduction on work-related expenses, so her taxable salary …

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