Hi,
I am a freelancer working from the past 5 years for an Indian company. I used to get my salary by hand and not through a bank account and so after getting rid of all my expenses, i used to drop the remaining cash in my savings account. So, till date I did not pay any income tax and did not even apply for a PAN card. Note-I am a sole bread earner in my house and I stay with my parents in a rented house.
Now, from the past 3 months, July 2013 I am working for a US company as a freelancer and I am getting my salary in dollars transferred directly to my account. I am sure that for the year 2013-2014 I am going to cross the income tax limit of 2 lacs and so assuming that I will stay in the bracket of 2 lacs-5 lacs I will have to shell out 10% of my earnings as income tax. ( this I came to know after searching a bit on internet)
Now, my question is “Is there any way to get income tax rebate by purchasing a national savings certificate from post office of LIC policy. Since, I live in a rented house I also pay a rent of around 10K monthly. So, can I get any rebate for paying rent?
I do not have expenses like advertising, equipment cost and so on to show…as expenses. So, please someone guide me on this issue……thanks in advance!
