shambhu
1
Sir,
I am working in India for a foreign company and getting my earnings in INR only. It is a contract based work for two years. Monthly fixed return is INR. 110000 and other expenses met will also reimbursed monthly bases. Kindly suggest me what all I need to maintain for accounts? How can I reduce my tax liability and as what I have to consider my earnings (i.e. salary, income from profession, other income, etc...)
Regards
shambhu
Your income would be considered as income from profession and you would need to file income tax return with ITR-4.
You would need to keep accounts of all incoming amount and outgoing expenses. The a profit/loss statement will be created from this. All expenses like telephone, internet, computer, petrol/car maintenance can be deducted from income to generate total profit. After these expenses a net taxable income will arise. On which you can claim deduction for 80-C savings, 80-D, 80-e etc like a normal salaried class person.
As profit/loss accounting, book keeping is a bit complex for non-professional, I would advise you to take help of any CA or tax professional in your tax filing and saving.
