In the Corona times we have seen many people have lost their jobs but along with that many people have even started their small business from home.
Among this women have excelled where they have entered into multiple small businesses which include:
- Starting Cake business
- Online tuition
- Selling home cooked food
- Sale of accessories
Above are a few businesses which the women are building online using their skills and Instagram, Facebook and other social media platforms.
Over time many people have built their own small business with a decent revenue and a bit of financial independence but many of them are still not aware about filing of Income tax return to declare their business for two reason: Either they are not aware about tax rules as to whether they have to file return or not, or they don’t know how to do it.
In this post we shall discuss on both the issue:
Who should file Income tax return?
As per Income tax law any person who is earning income above Rs. 2.5 lakh during a financial year should file her Income tax return.
There is no separate slab for females, earlier there used to be a slab but from last many years the slab rate for men or women is the same.
Thus, if your total income exceeds Rs. 2.5 lakh during a financial year then one is required to file Income tax return.
Now, many people would argue that one is not required to pay tax on income upto Rs. 5 lakh then why should one file Income tax return.
It is correct that there are some rebate available u/s 87A which provide some relief from tax upto the income of Rs. 5 lakh, however it does not take away the liability of filing Income tax return if the total income exceeds Rs. 2.5 lakh.
Filing of Income tax return and paying taxes are two different concepts and many people confuse it for one.
Other than the statutory liability there are various other benefits of filing Income tax return:
- It is a statement of your financial independence.
- If you file your Income tax return you can even keep a track of your annual income.
- In future if you wish to take loan for your business or take any loan for your self, filing of Income tax return will help you.
- It can even help in getting Visa if you wish to go outside for work or vacation.
How to show such income earned from home based business in Income tax return:
If you are doing this regularly and wish to build it, it is always advisable to show it as business income and claim expenses incurred in the business as expense and pay tax on profit.
If you wish and if you are eligible you can easily take benefit of presumptive taxation scheme of Income tax and disclose your profit and pay tax on same if required and you will not be required to maintain books of accounts.
Let’s discuss how you can file it.
People who are first time filers of Income tax return find it very difficult to find someone to file their Income tax return and with advancement in technology and government using technology to keep track of everyone’s financial transaction it is very important to file correct Income tax return.
Further, with pandemic people are very afraid in going out and meeting someone to discuss about their tax filing.
Here we step in to get you in contact of practicing Chartered Accountant who are experts in their field and you can get consultation from them online and then hire them to file your Income tax return.
We can even guide you with proper tax planning so that you can invest your money to earn some return from same and at the same time save tax.
Thus, if you are not sure about whether you should directly hire someone for filing Income tax return or have any question about tax filing you can first book consultation with our tax experts and after the conversation if you are satisfied you may book your ITR with us. To book consultation CLICK HERE.
If you just want to get your Income tax return filed you can do that too. To book your Income tax return filing with experts CLICK HERE and book your Income tax return.
Within 24 hours you will get a suitable reply from our team.