I am a freelancer (I work with my skills and get paid from India and outside). As i work from home and get paid direct cash deposits in my account so how to calculate my yearly income. So if i get paid 3lakh in a year from different sources, and i have only my bank statement as my payment proof. So i can calculate income from that.
Now the problem is there are some personal payments also(as someone returning me cash I paid for him) and also if I pay someone for their work.
How to calculate taxes to be paid.
Sachin-Your income is considered as business income. You have to calculate all such payments done as your income. You have to include such personal payments also. You can deduct any such expenses you incur for running your profession as business expenses. Net income will be taxable. If you don’t know how to do then contact any tax expert of your area.
Thanks, For sure i will calculate all credits to my income, and also expenses, but for expenses i have to show proofs(receipts, bills etc).I will contact a professional person in my area for this.