What taxes do i pay if i am self employed?

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What taxes do i pay if i am self employed?

Dilip

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November 24, 2022

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Advay · Answer 1 · 2022-11-24T14:45:30+00:00

Hey friend, Under section 2 (7) of the Income Tax Act, of 1961, citizens are required to pay self employed income tax on their income. This includes salaried individuals, self employed individuals or a proprietor of a sole-proprietorship business. Everyone needs to file their taxes before the end of each financial year. Get expert real estate guidance from the experts at NoBroker here. Pay your utility bills with NoBroker and get assured cashback. What taxes do I pay if I am self employed? You will need to file a professional tax and Income Tax Return– 4 (ITR-4) on the ITR portal. The tax amount is calculated. The following factors are taken into consideration.

Salary income
Income from house property
Capital gains
Income from business or profession
Income from other sources

Take a look at the table to know the rate of tax if you are a self employed individual aged below 60 years.

Taxable income level	Rate of tax
Up to INR 250,000	Nil
INR 250,001 to INR 500,000	5% of the income exceeding INR 2.5 lakhs
INR 500,001 to INR 10,00,000	5% of the income exceeding INR 2.5 lakhs + 20% of the income exceeding INR 5 lakhs
INR 10,00,001 and above	5% of the income exceeding INR 2.5 lakhs + 20% of the income exceeding INR 5 lakhs + 30% of the income exceeding INR 10 lakhs

How do I pay tax as self employed?

You will need to log into the official e-filing website (https://incometaxindiaefiling.gov.in).
If you haven't registered yourself, do so on the portal.
Enter your current address, and permanent address and hit on ‘Submit’.
Open the Income Tax Return– 4 (ITR-4) form.
Fill in your personal information such as your name, your PAN and your date of birth
Verify your details via password.

This is all from my end on rules, and processes for self employed income tax. Read more: How to file a professional tax NIL return in Karnataka? Is professional tax refundable? Who is liable to pay professional tax?

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