#Youtube the art of deduction registration#

Every year a small portion of its cost is expensed and is allowed to be reduced from your income. Such assets are capitalised and not charged to expenses when they are bought.

#Youtube the art of deduction registration#

Other Expenses: вЂњLocal taxes and insurance for your own business property and domain registration and apps purchased to test your product are also allowed as expenses,вЂќ adds Gupta.Дepreciation: When you purchase a capital asset, the benefit of such an asset is usually expected to last more than a year. Meals, Entertainment Or Hospitality Expenses: These can be claimed if you conduct client meetings, take your clients out for a meal or other outings and money has been solely spent with the intention of getting new business or retaining existing business. Any repairs to your laptop, printer and other equipment are also allowed to be deducted. Repairs Undertaken: If you have agreed to pay for repairs to the rented property or if you own the property, then too the repair expenses can be deducted. Rent Paid For Property: If you take a property on rent for carrying out your work, the rent paid can be deducted from the income as an expense. Travel Expenses: The cost of travel to meet your clients within or outside of India is allowed as a deduction. Office Expenses: Expenses incurred to carry out your work such as purchasing a printer, office supplies, monthly telephone bills, internet bills and conveyance expenses can be claimed as a deduction. Fifth, the expense should not have been incurred for any purpose that is an offence or is prohibited by law,вЂќ says Archit Gupta, founder and CEO of tax portal ClearTax.ДЄpart from these, other expenses can also be claimed for deduction. Fourth, it should not be a capital expenditure or a personal expenditure of the freelancer. Third, it should have been incurred during the tax year. Second, the expense should be fully and exclusively for the purpose of your work. вЂњFirst, the expense has to be for the freelance work being carried on. However, conditions apply to claiming such expenses as a deduction. These expenses are usually directly linked to the job they are performing. This includes purchase of office furniture, cab fares, client visits, and more. Expenses For DeductionДЇreelance workers can deduct the expenses they incur in performing their duties, from their income. Moreover, along with the changes in the periodicity or quantum of income, the applicable taxation rules may also be different from earlier. Those who are new to this method of working must remember that tax rules will apply to them as well. The Covid pandemic-hit sectors have led to an increase in the number of freelance professionals in the past two years. Freelance work suits them and they can work from the comfort of their home, a cafГ©, a scenic out-of-the-city location, or a coworking space.

Some people like the flexibility and independence to working from anywhere, so that they can pursue their other interests, or they simply like to avoid a tedious routine. Daily routine of office work may not be everyoneвЂ™s cup of tea.