This message is for some advice on taxation in India.

I worked with a small company and was outsourced to the Philippines to work onsite with a client. However, I received my income in my NRE account from Singapore as my employer (company) was based in Singapore as international remittances. I worked in the Philippines on a temporary visa, stayed there for about 2 years so I have NRI status. But I did not pay any taxes there as I was working on a temporary visa through which I couldn't obtain a TIN number. I know that govt. of India doesn't tax remittances to NRE account so there seems to be a loophole. Nevertheless, I understand I still need and would like to declare my income under "profession/freelancer" in India. That's how I paid last year's taxes as well.

Now, I left the company at the end of Sept'14 in perusal of my higher studies in Belgium for which I had to pay visa fee a couple of times (due to rejection once) as well as had to transfer my living expenses for the whole year to the university in advance to obtain a financial proof + I paid for the flights and other minor stuff.

My question is, while declaring my income can I show the above expenses as business expense? Can education costs be shown as training expense necessary to improve skill set and other expenses such as rent, mobile, transportation etc.. as necessary and unavoidable expense for freelancing (business). It seems a bit far fetched but I would like some professional advise as it could save me a drastic amount and considering I am not working anymore, I would like to save as much as possible. :)

Thank you in advance.

Best Regards
16th June 2015 From Belgium, Brussels

Income Tax Preparer,

It is not TIN, I think you are referring to PAN. NRE a/c is taxable, NRI a/c is non-taxable. Pon
16th June 2015 From India, Lucknow
Dear Pon
Thanks for your message. But I am afraid perhaps you did not understand my query. My query is related to the items I can show as expenses while filing for taxes.
PS - There is no such thing as NRI a/c, it's either NRE and NRO.
18th June 2015 From Belgium, Brussels
Regarding tax advice there is a clarification required are you Indian citizen since you mentioned NRI status i presume you are. Let me clarify for Indian citizen Income tax dept it is Non resident Indian (NRI). NRE or NRO is an account for bank accounts not relevant for Income tax.
you can show business related expenses for business account only. there are certain exp you can show to reduce your income tax burden if any. This working can be done by a qualified tax return preparer and a CA.
Myself am a Tax return Preparer.

19th October 2016
Please login to participate in this discussion. Discuss problems, ideas, solutions with industry peers. Stay up-to-date with what's new and what's happening in the industry. Create Account (No Registration Charges)

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network