I am doing a online business and want to save tax on it?

I am currently working with a Firm in Mumbai and my sal is 30k p.m. I am paying normal tax on it. I have also started a small online business and my earning is really going great. I have a NRE account and all my online income comes from US company.

My question is If i put my money in NRE account will i still have to pay tax in india?

Or are there any good options where i can save my tax by showing my business expenses if I have to pay?

You are working in India. You are an NRI. But it seems you was a NRI before. OK?

When you are in India and earning in India, you have to pay tax to Indian Income Tax department. You have to show your on line business income as Income From Business and you have to pay taxes on your salary+Business income. If you hide your on line on line business income, then you are taking some risk.

Regarding the expenses, you can show the room rent (or claim part of the house rent), claim power bill, claim employee salary (if you wish), claim computer depreciation, Internet bill, telephone or cell bills and so many. Contact a Tax consultant. He will guide you how to save tax.

If you put your money in an NRE account, I dont think you would have to pay Income Tax on it. To be doubly sure, ask your Bank's branch manager where you have the NRE account.

The best way to save your tax is to invest your money in insurance policies, N.S.C., Mutual Funds etc. but the investment limit is Rs. 1 lac per year only. But atleast you can save your tax on 1 lac.

Other thing, I also want to start online business as you are doing. Is there any scope for me too? For your kind reference, I am an accountant in Surat.

Thanks,
Jayesh.

Online business!! is it really happening? Can u tell how does it work?

Boss R u Online business organiser.

dont save tax
pay tax

you are a bittch!

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