Income Tax form in India for freelancing
"ITR1 or ITR2 needs to be filed. Declare the income through freelancing in the section ""income from other sources""" Since you are living in India and earning income not from salary, you must file your tax return under ITR4(Profits or Gains of Business or Profession). You can do it online on IncomeTax India eFiling website, step by step guide available here.
As you are not a tax resident in India, the income you have earned can be moved to India tax free. However if you are investing the funds into say shares / fixed deposits etc, the income you earn on these funds is taxable in India. The funds can be transferred directly into savings account. However its advisible to open an NRE/NRO account as its easier to track funds for tax purposes. i.e. these accounts by nature certify that the funds received into them are from foreign sources and can easily be explained to the tax authorities. However establishing the origin of funds in ordinary savings accounts needs more paper work. Whenever there is a scrutiny by tax authorities on this savings account, it would need more efforts to establish that the credits are from foreign earnings. How much amount can we transfer from India to the USA? Is the limit per year? As I understand your father in law is Indian Citizen and his tax paid earnings need to be transferred outside of India. Under the Liberalized Remittance Scheme by RBI, one can transfer upto 2,50,000 USD. Please check with your Bank for the exact paperwork. A form 15CA and 15CB [by CA] are required to establish taxes have been paid. What documents we have to present to the bank? See above. Should money be transferred to company's account(Indian Company) to USA company? or can be transferred to my husband's account. Transfer of funds by a Indian Company to US Company has some restrictions. Please check with CA for details. If you father in law has sold the Indian Company and paid the taxes in India; he can transfer the proceeds to his son in US as per the Liberalized Remittance Scheme. Can they just gift the whole amount to my husband? What will be the tax implication on my husband's part in USA and on my father in law in India. The whole amount can be gifted by your father in law to your husband [his son]. There is no tax implication in India as being an Indian resident, gift between close relatives is tax free. There is no tax implication to your husband as he is a US Citizen and as per gift tax the person giving the gift should be paying the applicable taxes. Since the person gifting is not US Citizen; this is not applicable. It is best to take advise from / appoint a professional CA. Will I have to pay GST? No GST is applicable. Exports outside of India do not have GST. Do I have to collect TDS when I send money to the PUBLISHERS ? No But another guy said, I have to pay 18% tax when receiving and sending payments, apart from that I have to collect 30.9% TDS when sending payment to the PUBLISHERS(outside India). There is only income tax applicable on profits. So whatever you get from Advertisers less of payments to publishers less of your expenses is your profit. Since you are doing this as individual, you will have to declare this as income from other sources and pay income tax as appropriate. Note there are restrictions on sending payments outside of India plus there are exchange rate fluctuations. It is best you open an Foreign Currency Resident [or Domestic] Account. This will enable you payout someone without much issues. Else you will have to follow FEMA and LRS schemes of RBI. I want to know whether the money I transferred to my NRI Account is taxable. No taxes. As you were NRI the funds you earn are not taxable in India irrespective of whether you transfer to India or keep it in Saudi. You can transfer this back to India anytime in 7 years after you become Resident Indian. I was a NRI in Saudi Arabia from Nov 2009 to October 2011. For the financial year 1 April 2009 to 31 March 2010, you would be treated as resident Indian and you Global income would be taxed. i.e. your income in Saudi from Nov 2009 to March 2010 would be taxed in India. You can claim DTAA. Whether I have to file my returns for those 2 yrs.  Ideally Yes. If you have not done, please consult a CA for advice. "Sole Proprietor can be registered under the ""Shop & Establishment Act"". Find out where one can register it in your city. One needs to fill a simple form. Its a nominal fee of Rs 100/-. If there is a Chamber of Commerce, they generally help in completing the formalities for free. A CA can also help you get this done for a small fee." Ethically, you and your landlord should always report both income and expense as there technically exists a service and a rent. So it is subject to taxation. On the other hand, it can be considered an exchange of a simple favour and if it doesn't involve a money exchange or any profits (I am assuming that you are not selling what you or your landlord produce on the market) no value can be calculated thus no taxation can be applied. This changes though if a contract is involved, as a legal value can be estimated. Caution: These subjects can vary on an extreme level of specificity, of what can and cannot be claimed as income and expense, which can vary per country, state, province and even per judge, as well as the nature and sector of the work. Also, if you intend to formalize this relationship, the type of contract and reporting forms do vary per state as well. So it might be best to confirm it with a local legal advisor to avoid unfortunate surprises. I am an Israeli based citizen who represents and Indian company who sells its products in Israel. As an agent I am entitled to commission on sales on behalf the Indian company who advised that. Any commission paid to you will be applicable to TDS at 20.9% of the commission amount, the tax will be paid and a Tax paid certificate will be given to you.   According to a Bilateral Double tax avoidance treaty if the tax has been deducted in India you will get credit for this tax in Israel. There are many different types of 1099 forms. Since you are comparing it to a W-2, I'm assuming you are talking about a 1099-MISC form.  Independent contractor income If you are a worker earning a salary or wage, your employer reports   your annual earnings at year-end on Form W-2. However, if you are an   independent contractor or self-employed you will receive a Form   1099-MISC from each client that pays you at least $600 during the tax   year. For example, if you are a freelance writer, consultant or   artist, you hire yourself out to individuals or companies on a   contract basis. The income you receive from each job you take should   be reported to you on Form 1099-MISC. When you prepare your tax   return, the IRS requires you to report all of this income and pay   income tax on it. So even if you receive a 1099-MISC form, you are required to pay taxes on it.