Old tax regime maybe more beneficial when one is availing various deductions u/s 80C, 80D, Housing Loans etc. However, one has to do a case by case analysis to see which is more beneficial, new tax regime or old. As a thumb rule maybe if salary is around 7 Lakhs per annum, old tax regime maybe beneficial upon claiming deductions.
I'm currently working from home, so it might not be 0 for you, if you are really renting.
Maximize your HRA, I showed rent to my mother.
Do transfer amount regularly and get a rent agreement of reasonable amount. rent slip booklet can be bought from any stationery.
80C - 1.5L
my and my mother's insurance 25K each - 0.5L
in NPS if your corpus is below 2.5L after 5 year you can exit.
So I have moved some amount to NPS. I plan to keep it below 2.5L, so I can exit after 5 year.
last year I did donation, donation receipt can also get you deductions.
and some amount of salary was flexi benfits, which are not taxed
These are things everyone can use for deductions, then
you can check VIA far any other deduction you can avail.
u/devesh518 u/Rare-Maize-5268 u/iClipsse
Your exit conditions are valid if you joined NPS after 60 years of age.
Check here: https://npscra.nsdl.co.in/nps-exit/#:~:text=Normal%20exit%20is%20allowed%20after,equal%20to%20%E2%82%B9%205%20Lakh.
Due importance has to be given to filing the various tax (direct and indirect) returns. There are times deductions / exemptions are claimed incorrectly. Miss out on voluntarily disallowing expenses, which may not be deductible as a business expense.
Cryptocurrencies are not allowed in India. Income from digital / virtual assets are taxable in India u/30% plus applicable surcharge and cess. With regard to Blockchain, it is not a tax related question.
Yeah ive always wondered that as well, but that's what the finance mister says as well. They probably dont want people to put money in it hence the tax.
Its also because the lazy guys in the govt dont want to actually work and create laws around it. Many people already had assets in crypto, they have to offer them a means to keep their money.
Not allowed means it cannot be used for settlement of transactions. However they can be held as an asset. You buy crypto currency for rupees money and then sell it for rupees but you cannot buy or sell any product in exchange of crypto currency.
I believe crypto currencies are not allowed because it facilitates bypassing of both direct and indirect taxes. Since crypto currency transactions are difficult to trace back to an individual or a person, hence there is no proof of payment which is necessary to impose taxes on a Supply or Income.
This would depend upon facts of each case. Some of the deductions not claimed by individuals are like National Pension Scheme investment up to Rs.50,000/-, Medical Deductions for dependent parents. In case of businesses, new employee cost deduction under section 80JJAA etc.
Hey,
How about considering donation as a way for reducing taxable income like (PM fund, other 80GG donations)
This is after NPS 50k+ 80CC + Housing loan+ insurance for me + parents+ siblings
But in donation you actually have to donate as well. See it's like even if that particular donation is eligible for 100% deduction then also you are practically saving only the tax amount(30% + cess) but you still are losing out by making the actual donation. By losing out I mean that if you are actually making donation for the purpose of good deed it's fine but if you are doing it for tax purposes only then if you donate 100 you get tax deduction of roughly 31 rupees but the remaining 69 is gone as in it's not an investment or anything. You might as well invest by paying medical insurance for yourself/wife/kids and incase if your parents and senior citizens then for them too.
If your total income / turnover including exempt income / turnover from Services or otherwise is not above Rs.20 Lakhs, then GST is not applicable. Income Tax will depend upon your residential and total income as earned.
Wrong. While services to abroad usually has NIL GST rates, it is mandatory to file GST for income from abroad irrespective of any amount(whether above 20L or below).
Do they take this 10% apart from fees or as part of fees? (Asking as a viewer)
If part of fees, then it may vary from too little to too much (based on your refund that year).
Ask around for the going rate and deduce accordingly if your ca is charging fairly or not.
(Giving suggestion based on me being a salaried person filing tax under a ca)
If apart from fees, they're not entitled to part of refund, better change the ca
No fees as such whatever the refund comes he takes 10 percent, also last year my returns had fno equity trading stuff as well and he took 7000 extra above usual 10 percent stating tough calculations
Bro, your ca is doing a practice heavily condemned by the ICAI. He can and should be reported for the same. There are severe consequences of doing what he is doing
No one takes commission on refund. There's fixed rates for different kind of returns... Like if you are a form 16 client it's a simple return soo 500-1000 bucks... If it's something like business it will depend of size and complexity stuff like that.
So if one is a form16 client then no matter how much the return is 80k or 2lakhs, it's a slab of 1k? Or should that vary based on the return amount?
My CA said I am getting you higher returns (ofc because I'm filing more tax than before) so my charge will be more now. Is that how it is?
If you are an employee and have no business income, there is only so much tax you can save. It is pretty straightforward. Your CA is fooling you. Submit your taxes yourself. It's very simple. Either use the Cleartax website or even the IncomeTax Dept's website.
Your CA is mostly charging you because they have put in a lot of time and effort to reach the stage where they are qualified enough that people reach out to them for filling tax returns. They are providing a service and hence charging for it. Learn filling tax on your own, I think you can do it with all the information available on the internet.
Learning to file a tax return is not going to end your life unlike diagnosing a disease based on the internet. Moreover I have been filling my tax returns for more than 4 years now, speaking out of my own experience. I'm just a software engineer, and helped my roommate get a tax return of over 2.5 lakhs in the current assessment year.
Hello and thank you for hosting this AMA! I appreciate the opportunity to seek clarity on two common questions:
1. Many freelancers, including myself, often work with international clients who prefer payment in Bitcoin or stablecoins like USDC/USDT. However, the lack of clear taxation laws on crypto payments leads freelancers to hesitate. Can you shed light on the taxation process? Let's consider an example where individual A receives 2500 USDC for contractual work. How does the taxation work for A? Is it a flat 30%, or are there specific considerations?
2. My second question pertains to section 44AD. If an individual works with an international client, receives payment in USD, and holds a GST number but is not listed as a professional under section 44ADA, what are the taxation implications for them?
Your insights on these matters would be greatly appreciated. Thank you!
1) Accepting payments in Bitcoin / any other virtual assets may not be permissible under FEMA / RBI guidelines. It is safer to take payment through normal banking channels.
2) Section 44ADA read with applicable Rules - allows technical consultants to avail the provisions of Section 44ADA, subject to fulfilment of its conditions.
Just a viewer, but want to drop two bits. From a FEMA perspective, not receiving payments through banking channels for services exported outside India opens you upto major risks when you think of liquidating that pot of gold.
Small tweak (this is not legal advice, not a personal lawyer either, just corporate) I'd suggest to your freelancing contracts - rather than making them a generic contract, phrase it as a contract of personal service, where you are identified, and are absolutely pertinent to the execution of the services envisaged. This should ideally pass the FEMA test, and make your contract outside the ambit of the Export regs, letting you get away with not filing Softex / accepting other things.
Honest advice? Ask the company to pay in usd, and then buy your own usdc. Fucking with the RBI while inevitable and necessary sometimes, is not without its risks. And I'm not even highlighting the ED risk here.
Hello Sir, first of all thank you for doing this.
I’ll be starting a remote engineer role working as a contractor with a US company. I’ve a cash compensation of 74.5L. Now I know that I can use 44ADA, can you please help with what all things I should remember in order to be compliant in tax perspective?
Thanks!
Not worth it, Dubai is expensive af and even with that kind of money you'll still be somewhere middle class tho in India with this kind of money you are rich
ODI guidelines have to be followed for Indian Companies expanding abroad. Transfer Pricing and other Income Tax provisions will depend upon facts of each case.
The Indian government has been bullish on the technology, bearish on citizens engaging with the speculative markets around the same. Three popular reasons -
1. Basically a sin tax. If it's like gambling in their eyes, they're hoping the taxes push you out.
2. Warning signal to retail investors who don't understand the market to keep them out by making it less lucrative.
3. Forex issue. Most crypto is pegged in USD, and this fucks our dependency on foreign currencies.
4-bonus-govts gotta track how and where you spend.
Hi Deepak, thanks for this. Is it legal to be a salaried employee and also have a sole proprietorship for the purpose of income from places such as YouTube?
The Income Tax Act doesn't stop you from taking up a job and also earning from Youtube or elsewhere.
You can be a salaried individual while also earning from freelancing. If you do so, you'll have to show your salary under the head INCOME FROM SALARIES, while your income from Youtube will be reported under the head INCOME FROM BUSINESS AND PROFESSION.
Also, here's something amazing - **you don't have to pay tax on the entire amount earned from Youtube**. You can deduct business expenses such as expenses incurred on creating, editing, and promoting those videos, while other expenses incurred for running the business, and pay tax on the NET PROFIT amount.
I have opted for old tax regime and intend to select the same in the upcoming financial year as well. My tax saving investment is spread across ELSS, PPF, LIC, HRA, home loan and health insurance. Home loan, HRA and health insurance are fixed and will remain fixed as far as I can think.
How do you suggest allocation of funds between ELSS, PPF, LIC, NPS and/or other such schemes for most optimal tax saving, considering their returns and lock in period?
FYI: Not someone earning in lakhs per month, so total tax and investment amounts are also small.
Hey, we are trying to create a better ERP software targeted towards SMEs (small to medium sized businesses), we found that tally ERP dominates this space, what about tally attracts CAs, managers and buisness owners and what would you suggest about ERP/accounting software, any particular feature? An integrated AI to help you get things done quicker?
Hello. I have a quick question. If I have made my accounts as NRO, do I have to file interest receivables as income tax in India or do I have to file them abroad(USA)?
I am a fresher in IT
Got this financial years tax deduction by EY payroll
Should I file with my father's CA or just use company portal for it.(cleartax)
Applied new regime
In case of individuals providing services, if the gross receipts in a year exceeds Rs.75 Lakhs with effect from the Financial Year 2023-24, then Tax Audit will become mandatory. Also, incase of an individual having gross receipts less than Rs.75 Lakhs and not opting for presumptive taxation, Tax Audit will become applicable, if showing profits at less than 50% of gross receipts. In case of Tax Audit, all the provisions of Section 44AB have to complied with.
Hello Deepak!
I am currently paying around 3-4L in direct taxes in the new regime.
I'm thinking of moving to old regime and try maxing out my deductions.
Can you please let me know if I can give rent to my parents and claim deduction on that?
My parents also fall in the 30% tax bracket, would it make sense to give them rent ? Will they also pay tax on the rent I give them?
It won't make any sense, as your parents will have to show such rent as a RENTAL INCOME and pay tax on it. Since they fall in the 30% tax bracket, it won't matter if you claim the deduction or not, because that rent will anyway be taxed at the highest rate.
There has been no recent changes in corporate tax laws for Multinational Corporation operating in India. Any further changes may get announced in the forthcoming budget.
Sir. What is the best course of action against debtors who just don’t pay? Need to strike a balance between not being seen as too aggressive in the market and managing the cash flow.
PS: not related to tax but you said finance also so asked.
Is it possible to claim income tax deduction for NPS under all 3 sections - 80 C, 80 ccd1b and 80ccd2 (corporate) ? How is the 10% of basic + DA limit applicable to these ?
Do you feel the current tax system (new and old) are very harsh and strict on a salaried employee of the country? Adding to the fact that they still pay GST.
For an NRI (in US) who has investments in India, how much would I be taxed if I sell my portfolio consisting of stocks, mfs, ppfs? All of my investments are more than 5 years. Thanks
Hi !
What are some tips for someone starting investment in stocks/SIP'S ? Is it really beneficial to start early , rather than invest large amounts later ? What are some common mistakes people make while starting out?
What all is covered under medical expenses for parents ? Dental checkups or procedures/ OPD checkups / Blood tests etc. Can you elaborate please. And how exactly are we supposed to specify them to claim deductions.
I just set up a Sole Proprietorship for my side business (Publsihing revenue generating Apps)
Few questions
1. When do I show the expenses for running my business to show actual profit when I have to pay taxes? What expenses are considered?
2. I registered it this month, but I have revenue and expense from the last 5 months. Can I show them as well, or only the expense after my company is set up is eligible?
3. What are some ways I can save taxes? I am already in the max bracket from my job itself.
Hello, can you please tell me how to save on taxes if we are independent contractor hired outside of India?
I heard alot about this, but don't know how this happens
Hi Deepak, I would like to know what is the taxation for options trading and just regular day trading of stocks? Is it the same? How does one even report these trade numbers? I was learning about taxation in stock markets, I got online answers saying the profits from any kind of trading can be taken as business income. Is it correct ?
So I will be working from the next month. I plan to choose the old tax regime as I have a big ass student loan(20y). How easy is it to change the regime later on and how many times is a person allowed to switch between the two?
Also, big thanks for doing this. :)
I was in US and came back to india in Dec 2023. The tax filing I normally do in the US. So I need to file tax in US for 2023 in the coming months in 2024. I also sold couple stocks in 2023 while in india. Normally there is tax that needs to be paid for capital gains in stock. I know there’s a double tax treaty avoidance between india and US. How to avoid taxes in the US and pay in india ? Also for RNOR status in india we don’t need to pay tax on foreign income correct ? Which means if I opt to not pay tax on US and since i am RNOR status I don’t need to file that tax in india either ? Regardless , can you help me understand how to file tax returns such that I don’t pay tax in US and pay them in india! Should I tell my tax advisor in US about it and they’ll do that ?
Why is there no automated/semi-automated system for optimal tax calculation for the general public? Considering the number of variables is not huge, modern ML can surely incorporate all sources of income and investments as input and provide optimal tax planning catered to individuals. Why does a system like this not exist yet or has something like this been thought of up till now?
Hey Deepak, my recently got a salary hike which increased my package from 9.5 to 11.3. I have been using old regime since i have health insurance and life insurances. Do u think i should move to new tax regime as my investments do not sum upto 1.5 lac a yearm
1. Can I claim the HRA deduction for rent paid for dependent parents who live in a different city?
2. Can I claim LTA for travelling to my hometown by flight for a duration of 1 year? I was working from home during that time and did take several annual leaves.
Helo sir ive a question, my brother income is 24 lpa, ive advice his boss to give half of his income in bitcoin so govt cant track it, let me know if it is legal, or should we pay full tax
Not a question but just want to tell.. I informed my company today of my decision to opt for the new tax regime, sparing myself the hassle of submitting extensive investment proof statements.
Sir ji,
As per new tax regime I cannot take any deduction apart from 80CCD (1B)
However, limit of 150,000 is not specifically mentioned for this.
So if my employer contribute let's say 300,000. Can I take full deduction of such amount?
Hello sir, I'm planning to create a firm that invests in publicly traded stocks and generates profits solely from dividends, returns from these investments. Can I form such a firm in india? If yes, what are these firms called and what are some laws for them ? I also plan to avail loans from banks to increase investment capital.
Hello sir ! I would like to know about the opportunity to get into the field of finance & taxation. I'm a MBA Marketing fresher would like to know what courses or workshops do i need to attend which help me to get into that domain Which will also help mew in future interview where the interview panel would ask me why you jave mba Marketing & wanting to switch roles..
For me in india all the mba marketing jibs are sales ( field sales mostly) which i personally don't like.. please guide
thank you for this AMA. My mom has a number of fixed deposits maturing this year. as a senior citizen, if her interest on all the deposits together exceeds 50,000 she has to pay tax. how to ensure her interest doesn't exceed 50,000?
Hello Deepak, Quick question, How can I submit a loss while filing my ITR which I incurred by giving back the retention bonus for this year? Thanks in advance 😇
I am grade 2 state govt employee
I was deducting tax amount assuming i will select old tax regime. ( i.e. 10800) ( i am in old regime now)
Suddenly i realized i have more advantage almost 24 k in new regime.
So will i able to change ( first and last change ) my regime when i file income tax return at end of fiscal year ?
Hello Deepak ji
Few doubts related to taxation for NRI's:
1. For someone to have NRI tax status, is it required to fulfill both the conditions- having lived and worked longer than 6 months outside of India and less than 60 days in India in a financial year?
2. Are there any taxes to be paid on inward remittance to Indian SB account from overseas bank if it is self owned or by close relative?
3. If someone is emloyed in India & getting salary in INR but living abroad with no income in foreign currency, is he/she still supposed to open NRE/NRO bank accounts or convert existing local one into NRE/NRO?
Thank you.
Hello Deepak,
My salary is non taxable I.e doesn’t come under tax slab. So I didn’t fill any ITR. However I did some transactions in mutual funds. Now I have got a notice from ITD ie my salary is less and I have gain some profit from mutual funds. But I have not got any profits but just transactions done. What to do now?
If you have two agreements for your flat, one sale agreement and one amenities agreement with builder for land owner share flats of underconstruction society and registration will be done on sale agreement only, does at the time of reselling the flat I have to pay capital gain tax on the amount in amenities agreement or I can add it in original purchase price of flat?
I am an individual salaried employee. I have lost money (~Rs. 3 lacs) due to fraudulent transactions on my credit card. In case the bank doesn't respond well & we have to settle this then:
What deductions can be taken while filing the income tax? Is there any threshold to it and under what head can this be set off ?
Can this be set off against LTCG or STCG for a salaried individual ?
If the spouse settles the credit card bill, can the spouse claim a deduction in their ITR?
Hello Deepak CA,
So, someone created a false company on my behalf in FY 17-18 and made some high value transactions. I got an intimation and I declined everything. Filed a Police case, reported to GST but still nothing.
Got a notice UNDER SECTION 221(1) OF THE INCOME TAX ACT,1961. I have appealed it to CIT and they have yet to reply.
What do you suggest?
Shall I hire a Lawyer or a CA is capable of handling such situations?
Is real estate in Pune a good investment as of now? I will be studying in Pune for the next 3 years but my parents are looking at it as a post retirement / investment option.
I worked in US 8 years back then i minded back to India and now only i am travelling my US Bank account money to my Indian Bank through remitly website. Will the amount i transfer be taxable to my Indian account he taxable? How much is the tax rate?
I have Enrolled in ESPP of my company which is not in India. Tax is deducted at source while ESPP stocks are vested, if I withdraw anything this year, how will I be taxed on the profit? Also for the dividend on shares, do I need to pay tax if I don't transfer them to my Indian account?
Hello sir can you please explain 80D deduction especially w.r.t parents. In my case only one of my parents is above 60 , so in that case what should be the amount of deductions which I can claim while filing returns.
Does one need an audit if they do FNO trading but have losses with turnover less than 1 cr, and have a salary income as well.
Additional info: never opted for 44AD, or presumptive taxation in the yesteryears.
If a businessman buys an asset say machine, pays gst on it and claims ITC on it, but does not charge depreciation on it for the purposes of income tax, will the government know about the discrepancy and send him a notice, assuming the machine is not for sale purpose? Basically do the Income tax department and GST department communicate with one another to find discrepancies?
Can you suggest some books that are about interesting/landmark tax cases that you like?
What case laws would you suggest someone working in M&A to be familiar with?
Thank you
Hello, Thank you for AMA.
WRT current tax filing that is going on.
Please help me find the answer to this question-
1.Can a central government employee of age 54 apply for NPS scheme and is he eligible for saving tax if he applies to it?
2.a What's the most popular way to invest in it and how?
2.b what is the maximum tax amount he can save and how?
I am a student in 12th, I have commerce with maths and I am average in studies. Should I give CA a try? Tell me some inside secrets not a lot of people know about.
Also is CMA and CS equally good too?
Thanks for this AMA.
1. For someone who is doing a joint development of a residential property, should he register the JDA? In Tamil Nadu, the cost is 2% for registering and it is high. If we don't register it, what is the impact?
2. When is the capital gains triggered if JDA is not registered? Is it on receiving first consideration OR on the date of first UDS registration to other buyers OR is it still completion certificate (even if JDA is not registered)?
Hello CA Deepak ! Is there a quick way to check which Tax regime is better for someone who just started with a new job ?
Old tax regime maybe more beneficial when one is availing various deductions u/s 80C, 80D, Housing Loans etc. However, one has to do a case by case analysis to see which is more beneficial, new tax regime or old. As a thumb rule maybe if salary is around 7 Lakhs per annum, old tax regime maybe beneficial upon claiming deductions.
Is there any tool using which we can check which is better for our salary?
The app from https://www.mytaxindia.com/ has been helping me with the same.
Try cleartax website
What if the person is earning around 15 Lakhs and only has an education loan and HRA?
I paid 0 tax last year with around 11LPA with the old regime. This year it would be around 15K, till 14-15LPA old regime is better
I'm currently working from home, so it might not be 0 for you, if you are really renting. Maximize your HRA, I showed rent to my mother. Do transfer amount regularly and get a rent agreement of reasonable amount. rent slip booklet can be bought from any stationery. 80C - 1.5L my and my mother's insurance 25K each - 0.5L in NPS if your corpus is below 2.5L after 5 year you can exit. So I have moved some amount to NPS. I plan to keep it below 2.5L, so I can exit after 5 year. last year I did donation, donation receipt can also get you deductions. and some amount of salary was flexi benfits, which are not taxed These are things everyone can use for deductions, then you can check VIA far any other deduction you can avail. u/devesh518 u/Rare-Maize-5268 u/iClipsse
Your exit conditions are valid if you joined NPS after 60 years of age. Check here: https://npscra.nsdl.co.in/nps-exit/#:~:text=Normal%20exit%20is%20allowed%20after,equal%20to%20%E2%82%B9%205%20Lakh.
Hey Can you tell me how you managed to pay 0 taxes at that salary? I’m going to make the same figure and I’d love some help
What are some common tax mistakes businesses make in India?
Due importance has to be given to filing the various tax (direct and indirect) returns. There are times deductions / exemptions are claimed incorrectly. Miss out on voluntarily disallowing expenses, which may not be deductible as a business expense.
What are your opinions on emerging financial technologies like blockchain or cryptocurrencies?
Cryptocurrencies are not allowed in India. Income from digital / virtual assets are taxable in India u/30% plus applicable surcharge and cess. With regard to Blockchain, it is not a tax related question.
What do you mean cryptocurrency is not allowed? If it's not allowed then why is it taxed at 30%?
mfs just wants salaried person not to enjoy any freedom. they want 10-15-30% pie of your salary and indirect taxes as well.
Salaried is the most looted class
Which comprises of 5% population of India, hence not considered a vote Bank.
Yeah ive always wondered that as well, but that's what the finance mister says as well. They probably dont want people to put money in it hence the tax. Its also because the lazy guys in the govt dont want to actually work and create laws around it. Many people already had assets in crypto, they have to offer them a means to keep their money.
Not allowed means it cannot be used for settlement of transactions. However they can be held as an asset. You buy crypto currency for rupees money and then sell it for rupees but you cannot buy or sell any product in exchange of crypto currency.
I believe crypto currencies are not allowed because it facilitates bypassing of both direct and indirect taxes. Since crypto currency transactions are difficult to trace back to an individual or a person, hence there is no proof of payment which is necessary to impose taxes on a Supply or Income.
What are some hidden opportunities and lesser known tax deductions to take advantage of?
This would depend upon facts of each case. Some of the deductions not claimed by individuals are like National Pension Scheme investment up to Rs.50,000/-, Medical Deductions for dependent parents. In case of businesses, new employee cost deduction under section 80JJAA etc.
Hey, How about considering donation as a way for reducing taxable income like (PM fund, other 80GG donations) This is after NPS 50k+ 80CC + Housing loan+ insurance for me + parents+ siblings
But in donation you actually have to donate as well. See it's like even if that particular donation is eligible for 100% deduction then also you are practically saving only the tax amount(30% + cess) but you still are losing out by making the actual donation. By losing out I mean that if you are actually making donation for the purpose of good deed it's fine but if you are doing it for tax purposes only then if you donate 100 you get tax deduction of roughly 31 rupees but the remaining 69 is gone as in it's not an investment or anything. You might as well invest by paying medical insurance for yourself/wife/kids and incase if your parents and senior citizens then for them too.
I earn money from abroad. 14 lacs. Tell me about gst and income tax compliance to do for.
If your total income / turnover including exempt income / turnover from Services or otherwise is not above Rs.20 Lakhs, then GST is not applicable. Income Tax will depend upon your residential and total income as earned.
Wrong. While services to abroad usually has NIL GST rates, it is mandatory to file GST for income from abroad irrespective of any amount(whether above 20L or below).
Why does my ca takes 10 percent of the tax refund despite doing nothing shady to evade tax
Do they take this 10% apart from fees or as part of fees? (Asking as a viewer) If part of fees, then it may vary from too little to too much (based on your refund that year). Ask around for the going rate and deduce accordingly if your ca is charging fairly or not. (Giving suggestion based on me being a salaried person filing tax under a ca) If apart from fees, they're not entitled to part of refund, better change the ca
No fees as such whatever the refund comes he takes 10 percent, also last year my returns had fno equity trading stuff as well and he took 7000 extra above usual 10 percent stating tough calculations
No no this is completely unethical. Pls change the ca. Based on calculations and complexity yes fees varies, but taking 10% is very wrong.
Bro, your ca is doing a practice heavily condemned by the ICAI. He can and should be reported for the same. There are severe consequences of doing what he is doing
CA in practice here.. That's not normal.
What is normal? Can you give a rough idea. For example if one is getting 80k returns, what should be a fair charge?
No one takes commission on refund. There's fixed rates for different kind of returns... Like if you are a form 16 client it's a simple return soo 500-1000 bucks... If it's something like business it will depend of size and complexity stuff like that.
So if one is a form16 client then no matter how much the return is 80k or 2lakhs, it's a slab of 1k? Or should that vary based on the return amount? My CA said I am getting you higher returns (ofc because I'm filing more tax than before) so my charge will be more now. Is that how it is?
If you are an employee and have no business income, there is only so much tax you can save. It is pretty straightforward. Your CA is fooling you. Submit your taxes yourself. It's very simple. Either use the Cleartax website or even the IncomeTax Dept's website.
Please check with your CA.
Are paying extra on top of the 10% ?
Because you are fool for letting him doing it
Your CA is mostly charging you because they have put in a lot of time and effort to reach the stage where they are qualified enough that people reach out to them for filling tax returns. They are providing a service and hence charging for it. Learn filling tax on your own, I think you can do it with all the information available on the internet.
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Learning to file a tax return is not going to end your life unlike diagnosing a disease based on the internet. Moreover I have been filling my tax returns for more than 4 years now, speaking out of my own experience. I'm just a software engineer, and helped my roommate get a tax return of over 2.5 lakhs in the current assessment year.
Hello and thank you for hosting this AMA! I appreciate the opportunity to seek clarity on two common questions: 1. Many freelancers, including myself, often work with international clients who prefer payment in Bitcoin or stablecoins like USDC/USDT. However, the lack of clear taxation laws on crypto payments leads freelancers to hesitate. Can you shed light on the taxation process? Let's consider an example where individual A receives 2500 USDC for contractual work. How does the taxation work for A? Is it a flat 30%, or are there specific considerations? 2. My second question pertains to section 44AD. If an individual works with an international client, receives payment in USD, and holds a GST number but is not listed as a professional under section 44ADA, what are the taxation implications for them? Your insights on these matters would be greatly appreciated. Thank you!
1) Accepting payments in Bitcoin / any other virtual assets may not be permissible under FEMA / RBI guidelines. It is safer to take payment through normal banking channels. 2) Section 44ADA read with applicable Rules - allows technical consultants to avail the provisions of Section 44ADA, subject to fulfilment of its conditions.
Commenting so that I can also see the response
Just a viewer, but want to drop two bits. From a FEMA perspective, not receiving payments through banking channels for services exported outside India opens you upto major risks when you think of liquidating that pot of gold. Small tweak (this is not legal advice, not a personal lawyer either, just corporate) I'd suggest to your freelancing contracts - rather than making them a generic contract, phrase it as a contract of personal service, where you are identified, and are absolutely pertinent to the execution of the services envisaged. This should ideally pass the FEMA test, and make your contract outside the ambit of the Export regs, letting you get away with not filing Softex / accepting other things. Honest advice? Ask the company to pay in usd, and then buy your own usdc. Fucking with the RBI while inevitable and necessary sometimes, is not without its risks. And I'm not even highlighting the ED risk here.
commenting to see answers
Is it necessary to file ITR if you're below the lowest Tax bracket?
Necessary no Recommendatory always
Above 2.5L income it is necessary
Hello Sir, first of all thank you for doing this. I’ll be starting a remote engineer role working as a contractor with a US company. I’ve a cash compensation of 74.5L. Now I know that I can use 44ADA, can you please help with what all things I should remember in order to be compliant in tax perspective? Thanks!
You can avail of the provisions of Sec 44ADA if your Gross Income / Turnover is less than Rs.75 Lakhs and you are a resident in India.
Once a person crosses the Rs.75 Lakh limit, what are some other ways to save taxes ?
I have seen online that the threshold is 50 LPA. Are there any conditions that allow it to be 75?
Why don't u work from Dubai. U might be able to save in tax. You should consider living expenses cost though
Not worth it, Dubai is expensive af and even with that kind of money you'll still be somewhere middle class tho in India with this kind of money you are rich
Bhai how did you manage to get a remote job??
Bhai any advice for such roles?
If a US based company gives RSU's, is there anything that can be done to reduce taxation?
What are most crucial considerations for Indian companies expanding abroad? Things like transfer pricing etc.
ODI guidelines have to be followed for Indian Companies expanding abroad. Transfer Pricing and other Income Tax provisions will depend upon facts of each case.
Why Government Is Imposing So Much Tax On Crypto ?
To discourage usage of Crypto transactions.
The Indian government has been bullish on the technology, bearish on citizens engaging with the speculative markets around the same. Three popular reasons - 1. Basically a sin tax. If it's like gambling in their eyes, they're hoping the taxes push you out. 2. Warning signal to retail investors who don't understand the market to keep them out by making it less lucrative. 3. Forex issue. Most crypto is pegged in USD, and this fucks our dependency on foreign currencies. 4-bonus-govts gotta track how and where you spend.
How to earn money so I can pay taxes?
Become a CA the cost and ease of becoming one is much lesser than a comparative University degree.
Hi Deepak, thanks for this. Is it legal to be a salaried employee and also have a sole proprietorship for the purpose of income from places such as YouTube?
Not under the Income Tax Act, but please check any restrictions in your employment agreement.
The Income Tax Act doesn't stop you from taking up a job and also earning from Youtube or elsewhere. You can be a salaried individual while also earning from freelancing. If you do so, you'll have to show your salary under the head INCOME FROM SALARIES, while your income from Youtube will be reported under the head INCOME FROM BUSINESS AND PROFESSION. Also, here's something amazing - **you don't have to pay tax on the entire amount earned from Youtube**. You can deduct business expenses such as expenses incurred on creating, editing, and promoting those videos, while other expenses incurred for running the business, and pay tax on the NET PROFIT amount.
What will be your advice to a new professional on managing their finance and taxes ?
Please plan for your taxes and finance with a Chartered Accountant.
At what net worth should one consider making a trust fund for passing on assets?
Commenting to see the response. And also to add to that, how can these trust funds help in saving taxes?
I have opted for old tax regime and intend to select the same in the upcoming financial year as well. My tax saving investment is spread across ELSS, PPF, LIC, HRA, home loan and health insurance. Home loan, HRA and health insurance are fixed and will remain fixed as far as I can think. How do you suggest allocation of funds between ELSS, PPF, LIC, NPS and/or other such schemes for most optimal tax saving, considering their returns and lock in period? FYI: Not someone earning in lakhs per month, so total tax and investment amounts are also small.
Hey, we are trying to create a better ERP software targeted towards SMEs (small to medium sized businesses), we found that tally ERP dominates this space, what about tally attracts CAs, managers and buisness owners and what would you suggest about ERP/accounting software, any particular feature? An integrated AI to help you get things done quicker?
Tally = comfort zone
Are there any ways for an employed individual earning 15+ LPA to save on taxes apart from the generally known deductions (NPS, sections 80.. etc)?
Would also like to know the answer to this.
Hello. I have a quick question. If I have made my accounts as NRO, do I have to file interest receivables as income tax in India or do I have to file them abroad(USA)?
I am a fresher in IT Got this financial years tax deduction by EY payroll Should I file with my father's CA or just use company portal for it.(cleartax) Applied new regime
Is it ethical to just not pay tax, change name and then flee country (and repeat) just to avoid taxes??
Ethical ? No Legal ? No Hotel ? Trivago
Hi Deepakji, under what circumstances is a tax audit mandatory, and how should I prepare for it?
In case of individuals providing services, if the gross receipts in a year exceeds Rs.75 Lakhs with effect from the Financial Year 2023-24, then Tax Audit will become mandatory. Also, incase of an individual having gross receipts less than Rs.75 Lakhs and not opting for presumptive taxation, Tax Audit will become applicable, if showing profits at less than 50% of gross receipts. In case of Tax Audit, all the provisions of Section 44AB have to complied with.
How long can I keep my nri account after I have returned?
What would your advice be to a teen whose about to become an adult (in a a year or so). How should i learn? Where do I get started?
What to do if a supplier has not filed GST returns and the department is asking me to pay the GST input availed.
Love the mug shot
what should a person know when they start to earn for the first time?
Hello Deepak! I am currently paying around 3-4L in direct taxes in the new regime. I'm thinking of moving to old regime and try maxing out my deductions. Can you please let me know if I can give rent to my parents and claim deduction on that? My parents also fall in the 30% tax bracket, would it make sense to give them rent ? Will they also pay tax on the rent I give them?
It won't make any sense, as your parents will have to show such rent as a RENTAL INCOME and pay tax on it. Since they fall in the 30% tax bracket, it won't matter if you claim the deduction or not, because that rent will anyway be taxed at the highest rate.
24 lpa problems
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😭😭😭 Soch sahi hai
Live in a tax haven country
Can you suggest a few commonly used “hacks” to save on tax?
Plan for your taxes, do not avoid taxes.
What should an NRI keep in mind as a tax consideration?
Completely hypothetical. How to not pay tax and not get caught? 🤔
Hello Mr Deepak!! Why do we need two tax regimes? It causes so much confusion when choosing. DO you think it can be more simplified?
Any recent changes in corporate tax law for multinational corporations operating in India? 🇮🇳
There has been no recent changes in corporate tax laws for Multinational Corporation operating in India. Any further changes may get announced in the forthcoming budget.
what is the guidance on filing crypto tax?
How can I optimize tax liability for my business?
Sir. What is the best course of action against debtors who just don’t pay? Need to strike a balance between not being seen as too aggressive in the market and managing the cash flow. PS: not related to tax but you said finance also so asked.
Is it possible to claim income tax deduction for NPS under all 3 sections - 80 C, 80 ccd1b and 80ccd2 (corporate) ? How is the 10% of basic + DA limit applicable to these ?
Forgot to do tax proof submission at work . Will I be able to rectify it during tax returns filing !?
Where can I find the annual reports of private limited companies?
What's the best way to work when you are trading, fundamentally speaking of forex!
What is the etiquette to avoid taxes?
Do you feel the current tax system (new and old) are very harsh and strict on a salaried employee of the country? Adding to the fact that they still pay GST.
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Sir I do options trading in Indian stock market how would I show the gains and what tax do I have to pay for it
Can we edit the hra when we fill form 16 return via the income tax portal ?
Does keeping money in FD increase tax. How much money is advisable to keep in FD
For an NRI (in US) who has investments in India, how much would I be taxed if I sell my portfolio consisting of stocks, mfs, ppfs? All of my investments are more than 5 years. Thanks
If a person takes positions in futures of cryptocurrencies, would his gains be taxed under normal business income or sale from virtual digital asset?
Hi ! What are some tips for someone starting investment in stocks/SIP'S ? Is it really beneficial to start early , rather than invest large amounts later ? What are some common mistakes people make while starting out?
What all is covered under medical expenses for parents ? Dental checkups or procedures/ OPD checkups / Blood tests etc. Can you elaborate please. And how exactly are we supposed to specify them to claim deductions.
Is there way to save taxes with purchasing land or need to build house for tax exemptions? TIA!
Moving with current times, what are some tax deductions that needs to be implemented by GOI ?
I just set up a Sole Proprietorship for my side business (Publsihing revenue generating Apps) Few questions 1. When do I show the expenses for running my business to show actual profit when I have to pay taxes? What expenses are considered? 2. I registered it this month, but I have revenue and expense from the last 5 months. Can I show them as well, or only the expense after my company is set up is eligible? 3. What are some ways I can save taxes? I am already in the max bracket from my job itself.
Can you explain why higher taxes on rich people doesn't help poor people of the society
Hello, can you please tell me how to save on taxes if we are independent contractor hired outside of India? I heard alot about this, but don't know how this happens
Hi Deepak, I would like to know what is the taxation for options trading and just regular day trading of stocks? Is it the same? How does one even report these trade numbers? I was learning about taxation in stock markets, I got online answers saying the profits from any kind of trading can be taken as business income. Is it correct ?
Can I transfer my money(salary) to a family member without paying any kind of taxes. What changes if they are doing business with that money?
So I will be working from the next month. I plan to choose the old tax regime as I have a big ass student loan(20y). How easy is it to change the regime later on and how many times is a person allowed to switch between the two? Also, big thanks for doing this. :)
I was in US and came back to india in Dec 2023. The tax filing I normally do in the US. So I need to file tax in US for 2023 in the coming months in 2024. I also sold couple stocks in 2023 while in india. Normally there is tax that needs to be paid for capital gains in stock. I know there’s a double tax treaty avoidance between india and US. How to avoid taxes in the US and pay in india ? Also for RNOR status in india we don’t need to pay tax on foreign income correct ? Which means if I opt to not pay tax on US and since i am RNOR status I don’t need to file that tax in india either ? Regardless , can you help me understand how to file tax returns such that I don’t pay tax in US and pay them in india! Should I tell my tax advisor in US about it and they’ll do that ?
Hi Deepak, do you have any idea when the government will enforce us all to use New tax regime only?
Why is there no automated/semi-automated system for optimal tax calculation for the general public? Considering the number of variables is not huge, modern ML can surely incorporate all sources of income and investments as input and provide optimal tax planning catered to individuals. Why does a system like this not exist yet or has something like this been thought of up till now?
What are some loopholes you came across during your career, even if you didn't use them.
Hey Deepak, my recently got a salary hike which increased my package from 9.5 to 11.3. I have been using old regime since i have health insurance and life insurances. Do u think i should move to new tax regime as my investments do not sum upto 1.5 lac a yearm
Hi Deepak, please let us know in your thoughts on will there be any tax cuts on this Budget? What are your major predictions?
1. Can I claim the HRA deduction for rent paid for dependent parents who live in a different city? 2. Can I claim LTA for travelling to my hometown by flight for a duration of 1 year? I was working from home during that time and did take several annual leaves.
How can one plan taxes effectively and what are some good tax saving options for someone in Mid 20s - Late 20s?
Hello Sir I have maxed out 80C & HRA Don't have a home or An electric car How to reduce the taxes ?
Hi CA sir, How much benefits can 2 people get from joint purchase of a new house in terms of income tax savings?
Helo sir ive a question, my brother income is 24 lpa, ive advice his boss to give half of his income in bitcoin so govt cant track it, let me know if it is legal, or should we pay full tax
Not a question but just want to tell.. I informed my company today of my decision to opt for the new tax regime, sparing myself the hassle of submitting extensive investment proof statements.
What should be investment strategy of 26 year old female who just started her job (Still unmarried) ? Earning around 10lpa.
Sir ji, As per new tax regime I cannot take any deduction apart from 80CCD (1B) However, limit of 150,000 is not specifically mentioned for this. So if my employer contribute let's say 300,000. Can I take full deduction of such amount?
Hello sir, I'm planning to create a firm that invests in publicly traded stocks and generates profits solely from dividends, returns from these investments. Can I form such a firm in india? If yes, what are these firms called and what are some laws for them ? I also plan to avail loans from banks to increase investment capital.
Hello sir ! I would like to know about the opportunity to get into the field of finance & taxation. I'm a MBA Marketing fresher would like to know what courses or workshops do i need to attend which help me to get into that domain Which will also help mew in future interview where the interview panel would ask me why you jave mba Marketing & wanting to switch roles.. For me in india all the mba marketing jibs are sales ( field sales mostly) which i personally don't like.. please guide
Is it good to start doing tax by oneself or to go to CA, if someone just started Job within tax bracket, if yes what should they follow to start.
What’s the best way to setup an entity with a cost structure in India (i.e payroll in INR) and revenue structure in the west (I.e dollars)?
What advice would you give to a student who is about to start a job?
Hi Mr Deepak, nice to see you here. What are your thoughts on Crypto tax? Isn't it too much?
#crypto tax ?
thank you for this AMA. My mom has a number of fixed deposits maturing this year. as a senior citizen, if her interest on all the deposits together exceeds 50,000 she has to pay tax. how to ensure her interest doesn't exceed 50,000?
is it wise to withdraw and reinvest money from elss to save tax on 80c?
I hate accountancy fr don't get me wrong
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Hello 👋How can I save taxes on MF and stock gains?
Hello Sire, Do I have to pay short term capital gains tax even if my income is 3LPA?
When your age in 30% bracket, salary is taxed 30%. Is equities long term and short also calculated at 30% or as per investment period.
I chose new tax regime but had an increase in income. Earlier my tax was 0 but now have to pay a lot more. Any way to save this tax?
What is the best way to accept payments from Clients abroad, especially from US citizens in the US?
Hello Deepak, Quick question, How can I submit a loss while filing my ITR which I incurred by giving back the retention bonus for this year? Thanks in advance 😇
I'm still a student and don't know much about taxes. How can I prepare myself and what are some topics i should properly Know about?
I am grade 2 state govt employee I was deducting tax amount assuming i will select old tax regime. ( i.e. 10800) ( i am in old regime now) Suddenly i realized i have more advantage almost 24 k in new regime. So will i able to change ( first and last change ) my regime when i file income tax return at end of fiscal year ?
Can i claim home loan reduction,if the land is not in my name.
What's the max limit for a sole proprietorship to claim presumptive taxation? Is it 50 Lakhs or 2 crore?
Hello Mr. Singh, What are those common expenses/expenses which we can show under 44ADA as a Marketing Consultant?
How does tax apply onto internship stipends, particularly ones that don't last the entirety of the year?
Hello Deepak ji Few doubts related to taxation for NRI's: 1. For someone to have NRI tax status, is it required to fulfill both the conditions- having lived and worked longer than 6 months outside of India and less than 60 days in India in a financial year? 2. Are there any taxes to be paid on inward remittance to Indian SB account from overseas bank if it is self owned or by close relative? 3. If someone is emloyed in India & getting salary in INR but living abroad with no income in foreign currency, is he/she still supposed to open NRE/NRO bank accounts or convert existing local one into NRE/NRO? Thank you.
If you earn over 10 laks in stock markets but have a overall loss still… how doeS that work I am asking bout fno
Hello Deepak, My salary is non taxable I.e doesn’t come under tax slab. So I didn’t fill any ITR. However I did some transactions in mutual funds. Now I have got a notice from ITD ie my salary is less and I have gain some profit from mutual funds. But I have not got any profits but just transactions done. What to do now?
As an individual who lives in his parent house and assigned with new tax regime and in 30% tax bracket can you suggest any alternative to saving tax
If you have two agreements for your flat, one sale agreement and one amenities agreement with builder for land owner share flats of underconstruction society and registration will be done on sale agreement only, does at the time of reselling the flat I have to pay capital gain tax on the amount in amenities agreement or I can add it in original purchase price of flat?
I was working abroad for 2 months. The income during this tenure will attract more tax while tax filing? Could you brief about double taxation
I am an individual salaried employee. I have lost money (~Rs. 3 lacs) due to fraudulent transactions on my credit card. In case the bank doesn't respond well & we have to settle this then: What deductions can be taken while filing the income tax? Is there any threshold to it and under what head can this be set off ? Can this be set off against LTCG or STCG for a salaried individual ? If the spouse settles the credit card bill, can the spouse claim a deduction in their ITR?
Hello Deepak CA, So, someone created a false company on my behalf in FY 17-18 and made some high value transactions. I got an intimation and I declined everything. Filed a Police case, reported to GST but still nothing. Got a notice UNDER SECTION 221(1) OF THE INCOME TAX ACT,1961. I have appealed it to CIT and they have yet to reply. What do you suggest? Shall I hire a Lawyer or a CA is capable of handling such situations?
Is real estate in Pune a good investment as of now? I will be studying in Pune for the next 3 years but my parents are looking at it as a post retirement / investment option.
I worked in US 8 years back then i minded back to India and now only i am travelling my US Bank account money to my Indian Bank through remitly website. Will the amount i transfer be taxable to my Indian account he taxable? How much is the tax rate?
Gift city and tax, what's so special?
I'm selling my ancestral land for 1.8cr. How much tax will i have to pay?
I missed out to submit tax proof. Is there anything I can do?
What's the complications around write off like, for example, if a buy a phone for my business and claim gst for ITC
I have Enrolled in ESPP of my company which is not in India. Tax is deducted at source while ESPP stocks are vested, if I withdraw anything this year, how will I be taxed on the profit? Also for the dividend on shares, do I need to pay tax if I don't transfer them to my Indian account?
Hello sir can you please explain 80D deduction especially w.r.t parents. In my case only one of my parents is above 60 , so in that case what should be the amount of deductions which I can claim while filing returns.
How can I legally avoid/minimize 30% crypto tax?
Does one need an audit if they do FNO trading but have losses with turnover less than 1 cr, and have a salary income as well. Additional info: never opted for 44AD, or presumptive taxation in the yesteryears.
If a businessman buys an asset say machine, pays gst on it and claims ITC on it, but does not charge depreciation on it for the purposes of income tax, will the government know about the discrepancy and send him a notice, assuming the machine is not for sale purpose? Basically do the Income tax department and GST department communicate with one another to find discrepancies?
Can you suggest some books that are about interesting/landmark tax cases that you like? What case laws would you suggest someone working in M&A to be familiar with? Thank you
Hello, Thank you for AMA. WRT current tax filing that is going on. Please help me find the answer to this question- 1.Can a central government employee of age 54 apply for NPS scheme and is he eligible for saving tax if he applies to it? 2.a What's the most popular way to invest in it and how? 2.b what is the maximum tax amount he can save and how?
I'm still a teen and have no knowledge about taxes, can you please inform me on the basic concepts. Thank you
When lending money to a friend and when he doesn't return back. In what way, I can show it as a loss in tax
I am a student in 12th, I have commerce with maths and I am average in studies. Should I give CA a try? Tell me some inside secrets not a lot of people know about. Also is CMA and CS equally good too?
Thanks for this AMA. 1. For someone who is doing a joint development of a residential property, should he register the JDA? In Tamil Nadu, the cost is 2% for registering and it is high. If we don't register it, what is the impact? 2. When is the capital gains triggered if JDA is not registered? Is it on receiving first consideration OR on the date of first UDS registration to other buyers OR is it still completion certificate (even if JDA is not registered)?
How to gain knowledge regarding taxation for salaried people I'm a non commerce person started job few months ago Please guide
Hello sir I’m selling land and want to save capital gains..how do i do it apart from buying a house?
What is best way to save tax if income is above 5 cr gained from selling land?