Hello
This message is for some advice on taxation in India.
I worked with a small company and was outsourced to the Philippines to work onsite with a client. However, I received my income in my NRE account from Singapore as my employer (company) was based in Singapore as international remittances. I worked in the Philippines on a temporary visa, stayed there for about 2 years so I have NRI status. But I did not pay any taxes there as I was working on a temporary visa through which I couldn't obtain a TIN number. I know that govt. of India doesn't tax remittances to NRE account so there seems to be a loophole. Nevertheless, I understand I still need and would like to declare my income under "profession/freelancer" in India. That's how I paid last year's taxes as well.
Now, I left the company at the end of Sept'14 in perusal of my higher studies in Belgium for which I had to pay visa fee a couple of times (due to rejection once) as well as had to transfer my living expenses for the whole year to the university in advance to obtain a financial proof + I paid for the flights and other minor stuff.
My question is, while declaring my income can I show the above expenses as business expense? Can education costs be shown as training expense necessary to improve skill set and other expenses such as rent, mobile, transportation etc.. as necessary and unavoidable expense for freelancing (business). It seems a bit far fetched but I would like some professional advise as it could save me a drastic amount and considering I am not working anymore, I would like to save as much as possible. :)
Thank you in advance.
Best Regards
Vineet
From Belgium, Brussels
2This message is for some advice on taxation in India.
I worked with a small company and was outsourced to the Philippines to work onsite with a client. However, I received my income in my NRE account from Singapore as my employer (company) was based in Singapore as international remittances. I worked in the Philippines on a temporary visa, stayed there for about 2 years so I have NRI status. But I did not pay any taxes there as I was working on a temporary visa through which I couldn't obtain a TIN number. I know that govt. of India doesn't tax remittances to NRE account so there seems to be a loophole. Nevertheless, I understand I still need and would like to declare my income under "profession/freelancer" in India. That's how I paid last year's taxes as well.
Now, I left the company at the end of Sept'14 in perusal of my higher studies in Belgium for which I had to pay visa fee a couple of times (due to rejection once) as well as had to transfer my living expenses for the whole year to the university in advance to obtain a financial proof + I paid for the flights and other minor stuff.
My question is, while declaring my income can I show the above expenses as business expense? Can education costs be shown as training expense necessary to improve skill set and other expenses such as rent, mobile, transportation etc.. as necessary and unavoidable expense for freelancing (business). It seems a bit far fetched but I would like some professional advise as it could save me a drastic amount and considering I am not working anymore, I would like to save as much as possible. :)
Thank you in advance.
Best Regards
Vineet
From Belgium, Brussels
hi
Regarding tax advice there is a clarification required are you Indian citizen since you mentioned NRI status i presume you are. Let me clarify for Indian citizen Income tax dept it is Non resident Indian (NRI). NRE or NRO is an account for bank accounts not relevant for Income tax.
you can show business related expenses for business account only. there are certain exp you can show to reduce your income tax burden if any. This working can be done by a qualified tax return preparer and a CA.
Myself am a Tax return Preparer.
thanks.
Regarding tax advice there is a clarification required are you Indian citizen since you mentioned NRI status i presume you are. Let me clarify for Indian citizen Income tax dept it is Non resident Indian (NRI). NRE or NRO is an account for bank accounts not relevant for Income tax.
you can show business related expenses for business account only. there are certain exp you can show to reduce your income tax burden if any. This working can be done by a qualified tax return preparer and a CA.
Myself am a Tax return Preparer.
thanks.
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls