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With the upcoming income tax return filing in India, it would be good for Indian domainers, web developers and internet based earners to discuss their Tax related questions among peers.
My questions:
1. If domaining and web development is your sole business as an individual what types of taxes do you have to pay if you are above the Income Tax Threshold of say Rs. 150,000?
2. How long have you been paying taxes to the Indian government for your domaining and internet based earnings?
3. Is a personal paypal account monitored or governed by any rules of the Indian government agencies for transactions? Like, you need to produce your PAN number when depositing more than Rs. 50,000 in a Bank account in India.
4. Do you go to a Chartered Accountant for help on filing your tax returns?
5. Are there any Laws or provisions in the Law made specifically for income earned through the internet in India?
6. What expenses can you claim in Tax filings if you are an individual having a domaining and web development business?
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Personal Tax Rates for reference purposes:
For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):
For the Assessment Year 2009-10
Taxable income slab (Rs.) Rate (%)
Up to 1,50,000 Nil
Up to 1,80,000 (for women) Nil
Up to 2,25,000 (for resident individual of 65 years or above) Nil
1,50,001 โ 3,00,000 10%
3,00,001 โ 5,00,000 20%
5,00,001 upwards 30%*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000.
Also:
Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
A marginal relief may be provided to ensure that the additional IT payable, including surcharge, on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than this mentioned amount.
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My questions:
1. If domaining and web development is your sole business as an individual what types of taxes do you have to pay if you are above the Income Tax Threshold of say Rs. 150,000?
2. How long have you been paying taxes to the Indian government for your domaining and internet based earnings?
3. Is a personal paypal account monitored or governed by any rules of the Indian government agencies for transactions? Like, you need to produce your PAN number when depositing more than Rs. 50,000 in a Bank account in India.
4. Do you go to a Chartered Accountant for help on filing your tax returns?
5. Are there any Laws or provisions in the Law made specifically for income earned through the internet in India?
6. What expenses can you claim in Tax filings if you are an individual having a domaining and web development business?
-------------------------------------------------------------------------
Personal Tax Rates for reference purposes:
For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):
For the Assessment Year 2009-10
Taxable income slab (Rs.) Rate (%)
Up to 1,50,000 Nil
Up to 1,80,000 (for women) Nil
Up to 2,25,000 (for resident individual of 65 years or above) Nil
1,50,001 โ 3,00,000 10%
3,00,001 โ 5,00,000 20%
5,00,001 upwards 30%*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000.
Also:
Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
A marginal relief may be provided to ensure that the additional IT payable, including surcharge, on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than this mentioned amount.
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