Tax Calculation for Independent Consultant

sanjay_india 1
Viewed 1824

Hi,

I do freelancing for clients located outside india. How can i reduce my tax burden through investments?

My specific questions are: 1) I paid my childs entire year school fees as Rs 50,000. Is this entire amount deductible under 80/c or only the tution fees component, which is just apprx Rs 1500 for this year?

2) What about expenses i incur every month: household, petrol, internet fees, medical expenses, rent for office etc?

3) I also outsource some of my work to other independent workers in my city in india? Is the amount i pay to them for work, an expense?

I want to make most of investment, tax exemptions and file my returns correctly, hence if above is clarified i can invest accordingly. Looking forward to your guidance asap..

Thanks, Sanjay

independent consultant-income consultant tax-exemption
1 Answers

@Sanjay_India

  1. Only the Actual Tuition Fees paid during the year is allowed to be deducted. Other components like Hostel Fees, Transport Fees etc are not allowed to be decuted u/s 80C
  2. Any Expense incurred for the purpose of your business like Telephone, Petrol, Office Rent, Staff Salaries are allowed to be shown as Expenses
  3. The amount paid to Independent Workers is also allowed to be shown as an Expense
CA Karan Batra532
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