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Indian IM'ers and Tax

Discussion in 'Business & Tax Advice' started by synfig, Jul 3, 2011.

  1. synfig

    synfig Regular Member

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    Hi, i'm sure there are some IM'mers from india and i would like to know how they file tax or how they do evaluation of tax. What documents they attatch and how they work everything out. Not yet in taxable earning as most of the earning is from other people in home but still my income may go to taxation if i earn 20k more, so looking for help. I find it hard here in my village because there are no online workers in this part of country and there are no financial advisors in this village. So unless i go to metro cities it's hard to get help on this. Anyone wants to explain how this stuff works for full time IMmer.
     
  2. rippa911

    rippa911 Junior Member

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    I am also interested to know.
     
  3. poorboi

    poorboi Regular Member

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    Previously there were STPI ( Software Technology Parks, India) Companies which were exempted from any kind of tax. You will have to check if your state has some SEZ or a similar tax haven where you can set-up your company. If you make quite a lot and are worried about taxations, you should open up a firm in some other country (tax haven, eg-Germany?) and deal in offshore billing. This way you wont end up paying any tax at all as you are not billing in India.
     
  4. synfig

    synfig Regular Member

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    Issue is that you can deal with virtual currency like lr, webmoney etc. But the point is that someday you have to move the funds to bank and KYC is going to map us to the income tax. Sooner or later we'll get under taxation hammer. I would like to know how to setup accounts in such countries to save money or to move money occasionally. any help(links or blogs or books) in opening firm in another country or bank account will surely help.
     
  5. indianbill007

    indianbill007 Jr. VIP Jr. VIP

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    If you want to save on taxes, then setting up a STPI registered firm is an option. Its quite an hassle though, all that sarkari shit.

    Otherwise simply file your taxes via a CA or file it online here - http://www.incometaxindia.gov.in/home.asp
     
  6. howard_hughes

    howard_hughes Elite Member

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    Can someone give a better, more detailed answer?
     
  7. anic21

    anic21 Junior Member

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    What is the tax limit for us ?
    Means kitni earning k bad hume tax pay karna padega ?
    I dont know much about it. pls help.
     
  8. soyafan

    soyafan Junior Member

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    More than 5 laks per annum as an individual i think.Not sure what is the lower ceiling if you start a company.
     
  9. ritesh

    ritesh Senior Member

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    Well this is what i have been doing.
    1)Open only student account(icici/sbi) as it does not require PAN.Use different alias.
    2)Dont keep lumpsome amount (<3lacks).Withdraw or distribute funds in other accounts.
    3)Close the account every other year.

    Doing it for past 2 years.Never paid any tax yet :D
     
  10. HElaa

    HElaa Newbie

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    It does not guarantee safe future.
     
  11. HElaa

    HElaa Newbie

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    HI Fellow members.

    I need to file taxes and SHOW income source to TAX department.

    I am earning from internet marketing.


    Please let me know what should i mention there for INCOME SOURCE so it looks real.


    Also my CA is trying to save most of taxes by showing expense - I DO NOT LIKE THIS = it may invite future problems.

    What should i do?


    THANKS and rep.
     
  12. anic21

    anic21 Junior Member

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    Its better to ask your CA as he is proffesional. He can give you better advice than any of us here.
     
  13. poorboi

    poorboi Regular Member

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    ITT: People with the right facts= 0.

    1. STPI has been scrapped off now. If you want Tax Relief go to Himachal Pradesh and open your company there.
    2. You can always opt in for an offshore company. An IBC in the Seychelles cots about 400 GBP.
    3. The money laundering involved is a bit tricky. You would have to open up a bank account in Cyprus, etc and then convert your cash to LR or Webmoney. After that you can sell LR at INR 50. I have many buyers, I can help you with that.
    JM2C :D
     
  14. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    Just visit to any chartered accountant in your city and ask them to fill your tax. They need nothing more than your bank transactions and your expenditures.

    Just show them all your bank transactions and they will book-keep them. No hassle just clean and clear. its my 4th year I have filled the taxes.
     
  15. synfig

    synfig Regular Member

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    @poorboi, loved your idea of moneylaundering LR thing. Thanks for previous reply as well. If you don't mind i may PM you for help.

    @Dheer, my earnings are coming from paypal/SA check and withdrawn directy to bank. Bloody paypal is keeping bad conversion rate for me 1USD=42INR. I don't have CA here in village so looks like i have to go to city for that. Another thing, what i need to attatch or show him ? Bank statement in seperate printout or passbook ? Because it only contains amount sent via SWIFT from paypal and there is not much of info about source etc.

    @anic21, tax starts from 1,80,000/INR. So if you're earning 1,80,000INR per anum then you're taxable.

    By the way, is there anyone who knows about online tax filing company ? or have experience with ?