Any income tax rebate for freelancers from India who purchase National savings certificate

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!

asked Oct 16 '13 at 03:37 by Freelancer 112


All tax saving sections (like 80C, 80D etc) would also applicable to you as well and you can save tax by investing under these sections.

You can read about such tax saving sections on this page: Tax saving components

You can also save some amount by showing deduction for house rent under section 80GG.

answered Oct 16 '13 at 12:38 by Pankaj Batra 5.2k320

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Asked: Oct 16 '13 at 03:37

Seen: 2,354 times

Last updated: Oct 16 '13 at 12:38