India Tax Guide
Tax guidance for FlexDuty experts based in India.
Overview
As an India-based contractor:
- Income is taxable under “Profits and Gains from Business”
- You’re responsible for paying advance tax
- GST may apply depending on turnover
- File ITR-3 or ITR-4
Income Tax Slabs (FY 2024-25)
New Tax Regime (Default)
| Income | Rate |
|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹6,00,000 | 5% |
| ₹6,00,001 - ₹9,00,000 | 10% |
| ₹9,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old Tax Regime (Optional)
| Income | Rate |
|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Advance Tax
If tax liability exceeds ₹10,000:
| Due Date | Percentage |
|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
GST Considerations
Registration Threshold
- ₹20 lakhs for services (₹10 lakhs in special category states)
- Mandatory if providing interstate services
Rates
- 18% GST on IT/consulting services
- Export of services (to clients outside India) is zero-rated
Compliance
- Monthly/quarterly GSTR-1 and GSTR-3B
- Annual return GSTR-9
| Form | For Whom |
|---|
| ITR-3 | Business income (detailed books) |
| ITR-4 | Presumptive taxation (Section 44ADA) |
Presumptive Taxation (44ADA)
If gross receipts ≤ ₹50 lakhs:
- Declare 50% of receipts as profit
- No need for detailed books
- File ITR-4
Foreign Income
- FlexDuty payments are foreign income
- Report in INR using RBI reference rate
- May qualify for DTAA benefits
TDS
FlexDuty does NOT deduct TDS as payments come from outside India. You’re responsible for paying full tax.
Key Dates
| Date | Event |
|---|
| 31 July | ITR deadline (non-audit cases) |
| 31 October | ITR deadline (audit cases) |
| 31 December | Revised/belated return deadline |
Record Keeping
Maintain:
- Bank statements showing receipts
- Invoices (if any)
- Expense receipts
- Foreign exchange conversion records
Getting Help
- Income Tax Department: incometax.gov.in
- Chartered Accountant
- Tax filing platforms (ClearTax, Zerodha)
Disclaimer
This is general information. Consult a Chartered Accountant for advice specific to your situation.
