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raj kamal singh (self employed)     15 January 2012

Income tax advice


I am a freelancer and doing home based job. I receive money from my local bank account (SBI) through the USA organization. The source of the money is USA organization.

Can I get any exemption of income tax as this money comes from outside country?

My monthly income is more or less 50,000 Rs/ . How much tax levy on my income and how can I get exemptions? Please advice....



I am a student from delhi. from last 2-3 month i got a web development job from singapore.

they are providing me 400 USD per month. i am receiving that money through western union.

Now my doubt is that is 400 USD money is tax free or i have to deposit tax in incometax department on behalf of receiving money from out of india(SINGAPORE).

My monthly income is 20k INR ($400). please advice its not permanent job its just freelance work. so i have to pay tax if yes then how much and how? and i am not sure that they are paying me 400 USD per month after deduction of tax or full amount.

so please advice me in right way i am much worried about it.

Please do the need ful


 6 Replies

snehasish chowdhury (self)     18 January 2012

service tax procedure for cargo handling service 


1) rate of service tax

2) billing procudre

3) it should be treated as GTA service

4) tax deposit procedure


Vineet (Director)     21 January 2012

Mr Raj Kamal

from your query, it appears that you are a resident Indian providing services to overseas parties.


Being a resident Indian, your global income is taxable in India irrespective of source. So your entire receipts are taxable and there is no exemption from any recepts from overseas for your services.


Still considering the quantum of your income, your may fall under a tax slab with Nil tax. As yoy are a freelancer, you can claim certain expenses such as rent, stationary, telephone, postage, electricity etc aganst the receipts and only the net income is taxable. Then you can invest money in tax saving instruments such as life insurance premium, NSC, PPF etc to get deduction. The remaining income is taxable if it is more than Rs 1.90 Lakhs per annum as per tax slabs for current year.

raj kamal singh (self employed)     21 January 2012

Thanks lots for right info.

sir i am working as a freelancer. i got all payment via western union.

but i dont have any slip regarding this transaction. but yes i provide web services to them. i have mail copy of all communication.

i have just started earning. but i dont want to play wid taxation. if i qualify tax then surely i will pay tax to deptt.

so i have doubts like how will i show my transaction to tax deptt. and all.

Vineet (Director)     21 January 2012

You can maintain all communications regarding contracts, services, bills and payment advices. The credit in your bank accout should match with thenpayment advice received on mial.


You should also keep bills of all expenses and keep a record of the same. Take help of some commerce student in your neighbourhood to draw a profit and loss account. If the profits are below tax limit of Rs 1.90 Lakhs, you are not required to file return of income. Still I suggest that you obtain PAN and start filing return as the same will help you in future business endeavours as well as visa applications.

DKTAZILANOM9909 (CHEMIST)     15 June 2014

Dear Sir,

    In the financial year 2013-14 certain amount of salary arrear was paid to us by our employer. During

payment of the arrear tax was deducted. Later we claimed Tax break up under Sec-89(1) of Itax. But our

employer paid partly amount of the benefit of Tax break up which is now reflecting in our Form-16.

Sir,we want TO get the full benefit of Tax break up under the above section. How can we get that?

What should we do now?



Akhilesh (service)     08 December 2014

Dear Sir/Madam,


I am going to Ghana for 9 to 12 months in the month of January 2015. My salary will be 3,000 US dollars when I will be at Ghana. The government organization will deposit my salary in my saving account in India when I will be in Ghana.


Condition is this I am working at Ghana and staying in Ghana and I am receiving my salary in Indian saving account in India, the organization is Indian and I have only stay visa at Ghana not working visa.


My question is this how much tax I have to pay in India. How much money will be deducted from my salary every month.






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