I work and earn from internet. Am I entitled to pay Income tax?

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Question by Sunny T: I work and earn from internet. Am I entitled to pay Income tax?
I am a graphic designer from INDIA. I work and earn from Internet.
My earnings are deposited to my savings bank account in India.
I have an average income of 1.3 lakhs per month.

Am I entitled to pay Income tax under Indian Tax laws.
How can I obtain some deductions if i am eligible to pay tax.

Thanks for any reply.

Best answer:

Answer by N.J.Reddy
You are a big assessee to Income Tax department. As per the details given by you are earring 1.3x12= 15.6 lakhs. It is some what high income. Because you have crossed 10 lakhs gross total income, your case is compulsory audit case u/s 44AB. You need to consult a Tax Consultant (C.A) and follow his advise.

http://personal.vsnl.com/arunhomepage/taxaudit.htm

You can claim the office expenses, computer depreciation, depreciation on Car/Motor cycle. Can claim the salaries of the employees, can claim phone bills.

You can invest (Max.) up to Rs.1 lakh in 80C deductions by which you can save tax about Rs 33,000. (LIC Premium, PPF, ELSS, NSC etc.,)

Depending on your expenses and 80C investments, I think that you have to nearly pay more than Rs.2.5 to 3.5 lakhs as tax.

What do you think? Answer below!

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One Reply to “I work and earn from internet. Am I entitled to pay Income tax?”

  1. You said that you are “…from India…account in India.”
    Where do you live? Do you live in a foreign country? If yes, your visa status? Are you required to report this income in the foreign country?
    Are you a NRI?

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