In the times when everyone is constantly working and trying to earn more there are many salaried employee also who work 8-10 hours a day at their job and are also doing freelancing work from their home especially engineers and computer engineers or many people are even trying their hand on being a social influencer or some might be doing intra day trading and are not aware on how they should tax such income and how to file return of income so in this article we will talk about that.
We have been receiving many questions these days and we will discuss a few of them:
Q. Can I do business on my own name or form another organisation to show my business?
A. If you are along doing a business or profession you can do it on your own name. There is no requirement of forming a separate firm or organisation.
Q. Can a salaried employee show his salary income and business or professional receipts in same return or different returns needs to be filed?
A. Yes you can file either ITR 3 or ITR 4 depending on under which head you are showing your income and show your business income along with salary income in that return of income.
Q. Do we need to fill balance sheet and profit and loss account while showing such business income and what needs to be filled in that?
A. If you are filing ITR 4 no need to fill entire balance sheet you just need to fill the mandatory details and that also requires only the details relating to your business. If you are having just business and salary income and if you are opting for ITR 3 then there are chances you are getting your accounts audited and in that case your CA would guide you with same.
Q. A person is earning salary income, income from intra day trading and also selling some long term investment in shares. Which ITR should he file?
A. In the above case the person is earning all the three types of income i.e. salary income, business income as intra day trading is considered as business income and capital gain income as sale for investment is capital gain and in such situation you can only file ITR 3.
Q. Will my salary be included in my receipts from freelancing service for income tax or GST purpose?
A. No it wont be considered as receipts neither in Income tax nor in GST. Therefore while calculating turnover for GST purpose your salary won’t be included.
I hope many of the questions would have answered from this. If you need any further assistance feel free to post it HERE.
This article is just for information purpose it is always advisable to hire a professional for practical execution. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.
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