Self-assessment tax in India?

#1 Jan 31st, 2004, 04:12
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#1
Do they have Tax Self-assessment in India?

my time on the forum has multiplied as the tax returns deadline has been looming closer.

leaving soon for the land of no IR worries though -bliss!

I loath doing it and wondered what your average Indian has to deal with in this department?
#2 Jan 31st, 2004, 18:08
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#2
Yes.
Me get a bleeding payslip every month with the tax cut wounds on it.
And at the end of the year they give a huge printout (much longer than all the payslips put together) explaining the whole saga of the TDS (Tax Deducted at Source!). This elegy has to be filed at the tax department. Millions and millions of taxpayers do this ritual in India.
#3 Feb 1st, 2004, 03:54
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#3
my condolences Beach!

I can't complain about the tax man so much as unscrupulous bad debtors this year. One of the hazards of self-employment when you're a small fish.

I'd have been in India over a year ago without that hassle.
#4 Feb 1st, 2004, 10:05
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#4
I think it's best to leave it to an accountant as there are many deductions you can claim. Furthermore, you may even claim refunds on TDS.

I could only find the following links:

www.incometaxindia.gov.in
www.incometaxindia.gov.in/taxcal.asp

There might be another website, ads have appeared almost daily in the Business Standard and Economic Times.

Apana
#5 Feb 1st, 2004, 15:16
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#5

Question is working as a westerner a major tax/admin hassle?

drifting off topic, but closely related...
what is it like getting formal emplyment in India as a westerner?

anyone I've asked has been puzzled. why would you want to do that? "Just travel"..but you never know. Assuming visas etc... could be arranged

Beach you sound like you are in that position (painful as the tax sounds!)

Bangalore is now recruiting mid and high end IT management from western countries.
#6 Feb 1st, 2004, 15:32
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BTW Beach,

why would the tax department want their own printouts back???
#7 Feb 1st, 2004, 16:38
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#7
You need to give the Devilís share to the Devil and Godís share to the God. Iím sure then only both will keep quiet.

Even the people working abroad under the Indian companyís payroll are to pay IT in India.
Iím not sure about the getting the regular job in India as a westerner. But there are a number of them from Europe working here. BPOs and the Call Centers are recruiting mid & high level management executives from various western countries. They say it is to Ďlearní the way business is done at those countries. I know a Japanese trainer here teach the local staffs Japanese etiquette. (Oops..With chopsticks half of the rice havenít reached the mouth! )

But Iím not sure if they are under the category of local employee or a foreign consultant. The later seems a more viable option. Itís not a complex process to pay to a foreign firm. Next time when I meet someone Iíll ask.

Most of the trans national companies in India are also having foreigners working here at all levels. This seems to be a no problem as the pay is made at the home country.



Regarding the printoutsÖ

No. The printouts are not from the tax department. They are from the employer who cut your tax systematically.
Tax paying to govt. is not the Ďreceiversí responsibility. If I pay you for your service, Iíve to cut the tax you are supposed to pay from the total and make the payment for the rest. I need to give you a certificate showing the tax cut (TDS) sum. I need to collect your tax account number and deposit the money to that account.

Likewise the bank cut the tax for the income I earned trough interests from my savings deposit. And then they give a printout of tax cut from me.

At the end of the year everyone have to compile all these TDS certificates, tie it neatly and throw it at that counter clerk at the tax dept. All the money you are supposed to pay have already been cut and paid at the income source!

If they donít cut my tax at source, Iíll spend all the money by the end of the year including the tax sum (at least Iíll try to prove). Then Iíll find excuses for not paying the tax or paying it later (?)...

Who said government doesnít use brain??
#8 Feb 1st, 2004, 22:55
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#8


gee I guess I should count my blessings here.



Thanks for asking.

I asked my Tax inspector recently what I should do if I got employment in India or Asia. -Pay Indian tax and get tax credits here for them on my uk record. (Dunno how proactive/optional a process that is)

He also said re. travelling generally "just put a note on your next return form telling us the dates and any relevent details" -easy
#9 Feb 2nd, 2004, 03:55
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Quote:
I asked my Tax inspector recently what I should do if I got employment in India or Asia. -Pay Indian tax and get tax credits here for them on my uk record. (Dunno how proactive/optional a process that is)
In the US, if we pay income tax (on earnings or on investments) to a foreign country, we are eligible in most cases for a "foreign tax credit" if the same income is taxed by our own country.

The US, also, has self-assessed taxes, while India, for many, the tax is already withheld (more like the old UK system). But there are different procedures for Indians who are self-employed -- I don't have the details here at the moment, but have seen them.


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