There is a guy on my LinkedIn time line who is arguing with me. Says you have to only pay 1% tax if your payments are coming from outside India. Someone also please tell me. I have been paying too much tax in last two years. 😂

I'm so tired of these LinkedIn thinktanks. I've seen the most meaningless airy conversations on LinkedIn more than on Reddit or Twitter. I simply avoid looking at the feed.

1%? Doesn't make any sense.

Perhaps you or he misunderstood zero rated GST in which case he's overpaying GST :-)

Guys i already posted here in this community that, one can save A LOT OF tax by being freelancer and getting foreign remittances for work done .. I was paying hardly 3% tax when i was freelance

I think you meant 44AD instead of 44AE. 44AE will require me to run a transportation business :-)

@victorious-energy-56764 Yeah it didn't make sense to me what he is talking about.

If you're a freelancer or business, the rule is simple: you pay 30% tax on net profit. If your net profit on paper is 10% of gross income then you pay 3% tax. I would strongly recommend not doing this.

Well, your net profit is considered 8% if you go for 44AE , straight away without any book-keeping .. similarly 50% is considered as Income if you go for 44ADa .. 8% profit on your income say 100K USD is hardly 8K usd which is hardly 6 LAKH PER ANNUM .. how much tax u think u need to pay then ? on NET ?

Still doesn't make sense to me. Sorry.

how much do you approximately get as foreign remittance ? if you had similar CTC job in India you would be paying straight away top of 30% slab .. while in this you wouldn’t or you can save upto a lot … like i paid 1.5 Lakh INR tax for 48 Lakh earned in an year

@some-city-49619 AFAICT, most subsections of 44AD (for business, professional, pvt ltd) have a 50 lakh limit. So in your 100K USD case, you're already at 70 lakhs. https://www.paisabazaar.com/tax/section-44ad-income-tax-act/ (See Section 44ADA for Professionals at the bottom)

Ya so for an year, few months i was at 100K USD not all the months.. that’s why i gave exact figures later .. read those .. Also one more way in case of foreing remittance is. get those 20L in wife’s account or someone not paying high tax in family .. and 50 in yours .

@some-city-49619 I don't think anyone was trolling. I think we're all here to learn. You usecase requires lots of umm.... flexibility from the employer or client to send money to two different accounts and needs creative accounting. Most companies won't agree to it. Or you would need to incorporate an LLP or something. But agreed that if you're under the 50 lakh limit, you should definitely look at 44AD.

Without that till 50 Lakh can u save or not ? why trolling others for calling 1% tax or 3% or even 0% .. without knowing.

Hey guys. I feel that this discussion is going a lot in the gray area of tax evasion. It would be best if we do not discuss this any further directly on the group. You are free to take this offline. The liability of such advice eventually falls on group moderators and I for one would not want to be involved in this. Thanks.

@millions-ice-83302 yes, it was me on linkedin who shared that and it was on GST, small world :) Yes, it's advanced and do it at your own risk. My CA's and financial experts handle it, I don't worry about it much. But overall 1-3% is what you can pay if you use loopholes well and it's fully legal. Or please pay 30% and continue trolling without research - your call Cc @rough-autumn-89795 - here are more details. All foreign remiitances only here