Mandatory Compliances Services
Any income generated from a profession which involves skilled work whether manual or intellectual is considered taxable income. This income comes under the section called “Profits and Gains of Business and Profession”.The income is calculated as the sum of all the receipts that shows a record of your services delivered to the clients. Your bank account statement can be used as a record of proof for the payments you have received from your clients.
Freelance professionals are required to maintain account books in accordance with Rule 6F of the Income tax Rules, to keep a check for their due and received income either by Accrual Basis of Accounting (also called Mercantile Basis) or by Cash Basis of Accounting.
Presumptive Taxation Scheme
The Government of India has introduced a new scheme of presumptive taxation under Section 44ADA, for professionals whose total income in a year is less than ₹50 lakh. Under the presumptive taxation scheme professionals can file their return declaring 50% of their gross receipts as income. After deducting section 80 deductions, professionals need to pay tax on the balance of total income only. The creative professionals like architectural professional, interior decorator, advertiser or technical consultant are eligible to opt for this scheme.
Salaried employees with a regular day job and who do additional freelance or consulting work during their free time, can also benefit from the presumptive taxation scheme. In such a case, you need to add only half of your freelance income to your salary income to calculate tax returns. Such individuals will have to use ITR-4 to file their income tax returns.
Why avail Bizpole Services
Bizpole is a leading ITR consulting services platform in India. Our experts can help simplify your Income Tax returns filing with the IT department. We handle Income Tax compliances with authorities and advisory services for all categories.Our charges are only a fraction of the price charged by offline chartered accountants making it cost effective for your business.
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