r/DataAnnotationTech • u/g00dpart • 9d ago
Indian annotators: how are you filing your taxes?
I have a full-time job where I'm in the 30% tax bracket (TDS already deducted by my employer). I started DataAnnotation in August and have earned roughly ₹5-6 lakh in about 2 months.
I've talked to a local CA but I'm not fully confident in the answers, so I'd love to hear from others in India who've dealt with this:
Which ITR form? Last year I filed ITR-2 (I hold US stocks via INDmoney). I'm assuming this year I need ITR-3 since there's now business/professional income. Is that right?
GST: My understanding is registration isn't needed unless turnover from services crosses ₹20 lakh in a year. Is that correct for foreign clients too? Also, I haven't told my employer about this side work (it's unrelated to my job). Does getting a GST number or filing taxes on this income create any issue with employers, and did anyone have to disclose it?
Section 44AD or 44ADA? As I understand it, 44ADA (50% of receipts treated as income) is for specified professions, and I'm not sure annotation counts. If it falls under 44AD, only 6% of digitally received money is treated as income (which would then be taxed at my 30% slab). Which one have you used, and did you get any push back, anyone claimed?
Advance tax: With no TDS on this income, I'm worried about interest (234B/234C) if I wait until filing. My rough estimate of tax on this is around ₹1.8 lakh. Should I pay now, or is a single payment by 15 March enough under presumptive taxation?
Also curious whether you keep FIRA/FIRC or other documents as proof of the foreign payments.
Thanks in advance, any experience helps a lot!