TAX SAVING FOR FREELANCERS, PROFESSIONALS, TRADER & WEB BASED AGENCIES

Income Tax benefits And IT Returns eFiling For Actors

Income Tax benefits And IT Returns eFiling For Actors

Actors receive income from the following sources.

1)Income by way of remuneration from acting the cinemas 
2)Income received from advertisements 
3)Income received from acting as a brand ambassador.

Taxability of Remuneration received by the actors

Remuneration for actors shall be in the nature of professional charges and hence the taxability of the same shall be under income from business and profession.

a)Books of accounts are to be maintained as per the 44AA of the income tax act 1961 in the following cases

Where the gross receipts from the specified profession(Acting) exceed Rs. 1,50,000 in any of the 3 years immediately preceding previous years relevant to current previous year, or not likely to exceed Rs 1,50,000 in the current previous year.

Following books of accounts need to be maintained as per section 44AA

1)All bills in original for those exceeding the amount of Rs 50 per bill 
2)All bills as a carbon copy if amount exceeding Rs25 
3)Ledger (for example, Details of the services rendered to clients has to be maintained as per the accounting format known as ledger) 
4)Journal 
5)Cash Book (All receipts for the services rendered are to be maintained in a separate book known as Cash/Bank book)

Major Expenses which are allowed to be deducted for actors.

1)Expenditure relating to paying salaries and other charges to the personal assistants, managers, engaged by the actor. 
2)Amount paid to the fitness trainer and other trainers relating to the vocal, acting and other for imparting other skills. 
3)Periodic utility & maintenance charges such as rent paid for the office premises, electricity and telephone charges used for official purpose. 
4)Holding an office at home? yes you can claim the rent, electricity, telephone and maintenance of the same to the extent used for such official purpose. 
5)Any expenditure incurred towards diet such as purchase of proteins, supplements, and salary payment to the fitness trainer.

b)Yes..! no need to maintain books of accounts, neither maintain a register a bills. Here is how you can opt this out.

As per the new amendment in the finance act 2016 a new concept of presumptive income is applicable to the actors in the following cases, 
i)For those Actors whose form of business is in the nature of sole proprietorship, Partnership, or HUF, if the total gross receipts in the previous year done not exceeding Rs.50,00,000, there is no requirement of filing Income tax audit report for the said business, provided the rate of income declared on such presumptive income is not less than 50% of the gross receipts. 
ii)No books of accounts are required to be maintained under section 44ADA 
iii)Income shall be declared @50% on the total receipts/Turnover in the relevant previous year. 
iv)However advance tax has to be paid even for such professionals in one installment which shall be 15th of March of the relevant previous year. 
iv)However Advance tax has to be paid even for such professionals in one installment which shall be 15th march of the relevant previous year.

Tax saving for Freelancers, Professionals, Trader and Web based agencies

10 mins of consultation. Place a request.

Some of the featured articles from our knowledge center

Business2 13a51fd54d37dfeead10bd04c34a46671e69097acf6d8002d2665eb06b5cf58f
What is the income tax payable on partnership firm

As per section 4 of partnership act 1932, partnership means the relationship between the person who are agreed to share the profits of business car...

Business3 1835184f1312bba0b871fddd223a24dd62299180ed03a78d9e4098813c851963
What is business income on presumptive basis under section 44ad and 44ada

As per section 44AA income Tax act 1962, every person who is carrying on business or profession is required to maintain books of accounts. However,...

Business1 8b8cee9b60a38e9df92fb5b897e7c09195532b3d70b7ec28803a600cf2ce60cd
What is GST and different types of GST forms

The Prime Minister approved “The constitution amendment bill for Goods and Service Tax”(GST) in the Parliament Session (Rajya Sabha on 3 August 201...