Income Tax for Job Income + Freelance Income

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  1. richasharma19840

    richasharma19840 New Member

    Hello, I have an IT job and plus doing/getting free lancing from America. Do I have to pay TAX for my freelance work in the US or India?

    I read online about "Presumptive Income Tax Scheme", can I use it?

    Thank you for the help.
  2. richasharma19840

    richasharma19840 New Member

    Thanks for the reply. So, here is the situation - I am working in IT with 30% taxable salary bracket. Now I am also in parallel working as a freelancer for US and taking work. My employer is deducting my 30% tax as per my salary. The question is how should I pay my taxes for the freelance work? Will that be 1- presumptive tax scheme 2- 30% on my freelance income or 3. GST? Please help. Thank you.
  3. CA Keshav Kumar

    CA Keshav Kumar New Member

    You will have to file ITR at year end. Income tax is being computed under different 5 heads. In your case there will be income from salary and income from profession/Business,

    Income under Business/Profession income can be calculated based on presumptive basis (8% in case of business and 50% in case of profession) and income from salary will be clubbed and after that deduction under Chapter VI will be made and post that ta will be calculated. Tax calculated based on above basis less TDS deducted by employer has to be paid to Givt while filing ITR at year end. (Note: you will have to see whether your service is covered under business or profession as there is separate limit for turnover under presumptive taxation.)

    Also GST will be NIL in your case if following conditions are satisfied:

    1. The supplier of service is located in India,

    2. The recipient of service is located outside India,

    3. The place of supply of service is outside India,

    4. The payment for such service has been received by the supplier of service in convertible foreign exchange, and

    5. The supplier of service and recipient of service are not just establishments of a distinct person.
  4. richasharma19840

    richasharma19840 New Member

    Got it SIR. So, I am doing marketing consultation for the US Company then can I go with presumptive? Or I have to pay the income tax with 30% on total income? Thank you again.
  5. CA Keshav Kumar

    CA Keshav Kumar New Member

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