Need help with paying taxes

[beingmohit]

My wife works for an organisation that pays her the entire salary upfront, with no TDS, no EPF, or any other deductions of any sort.
How can she invest in PF? How can she pay her taxes as it will involve a lot of calculations? Should we hire a CA (if yes, please suggest if you know anyone), or should we avail of online services like Cleartax?

 

[panchabhut]

EPF can only be routed through employer. Not possible at individual level. However, NPS and PPF is possible at individual level. Is she treated as a salaried employee or a consultant? As long as total salary is higher than taxable amount, TDS is mandatory for employer (unless the employer is special category like foreign consulate/organization directly under foreign consulate)

 

[beingmohit]

EPF can only be routed through employer. Not possible at individual level. However, NPS and PPF is possible at individual level. Is she treated as a salaried employee or a consultant? As long as total salary is higher than taxable amount, TDS is mandatory for employer (unless the employer is special category like foreign consulate/organization directly under foreign consulate)

She is a salaried employee, not a consultant. I should probably ask her to get more info about the nature of her employment and employer.
What if the company is not registered in India? They would not deduct any TDS, right?

 

[sleepysurya]

She is a salaried employee, not a consultant. I should probably ask her to get more info about the nature of her employment and employer.
What if the company is not registered in India? They would not deduct any TDS, right?

If company is not registered in India, then yeah there won’t be any TDS. I know some people who work for companies not registered in India and even though they are full-time employees, their income is not considered as salary income, rather contract/business income. Check with your wife - if not clear, ask her to check with someone who is from India in her own company about taxation.
Also, does she get paid in foreign currency?

 

[beingmohit]

If company is not registered in India, then yeah there won’t be any TDS. I know some people who work for companies not registered in India and even though they are full-time employees, their income is not considered as salary income, rather contract/business income. Check with your wife - if not clear, ask her to check with someone who is from India in her own company about taxation.
Also, does she get paid in foreign currency?

She got her first salary today morning. It was to her Indian bank account via Wise. I guess her employer pays in USD and it gets converted to INR before getting deposited to her Indian bank account

 

[sleepysurya]

I think her income would be considered as freelane income - which is mostly good as she can use Section 44ADA to claim 50% of income as taxable income under presumtive income scheme. That scheme also lets you skip TDS and pay advance tax only before last deadline of 15th March. But she will need to file ITR-3 (as freelance income comes under business income) which is more complex and may require CA’s help - or you can try after watching some YouTube videos.
FIRC is something you will have to consider since its an inward remittance. Some more details here - https://www.sidharth.dev/posts/payment-2022/
PS - I am not a CA and my knowledge is based on friend's experience - same things may/may not applicable in your case.

 

[beingmohit]

I think her income would be considered as freelane income - which is mostly good as she can use Section 44ADA to claim 50% of income as taxable income under presumtive income scheme. That scheme also lets you skip TDS and pay advance tax only before last deadline of 15th March. But she will need to file ITR-3 (as freelance income comes under business income) which is more complex and may require CA’s help - or you can try after watching some YouTube videos.
FIRC is something you will have to consider since its an inward remittance. Some more details here - https://www.sidharth.dev/posts/payment-2022/
PS - I am not a CA and my knowledge is based on friend's experience - same things may/may not applicable in your case.

Thank you so much for sharing these details. I think my best option is to get in touch with a CA.

 

[sharpened]

I think her income would be considered as freelane income - which is mostly good as she can use Section 44ADA to claim 50% of income as taxable income under presumtive income scheme. That scheme also lets you skip TDS and pay advance tax only before last deadline of 15th March. But she will need to file ITR-3 (as freelance income comes under business income) which is more complex and may require CA’s help - or you can try after watching some YouTube videos.
FIRC is something you will have to consider since its an inward remittance. Some more details here - https://www.sidharth.dev/posts/payment-2022/
PS - I am not a CA and my knowledge is based on friend's experience - same things may/may not applicable in your case.

I file under 44ADA but use ITR-4. It's a very easy form and I DIY it every year. But yeah, if you're even remotely clueless, you should definitely consult a CA.

 

[Anas Manjevdiwala]

I do not think that you can consider this as professional income under sec 44ADA, it’s primarily depends upon the contract with the company and what words are used to describe the relation between you and company, if it’s mentioned that you are working as a employee then you have to pay taxes under salary income.