1. #1
    Unregistered

    Is it legal to run a business and work in the private firm?

    I do work in a private firm and at the same time run a small scale busniess. Is it legal to do that? Do I have to pay tax on both my income? Or only in private firm should be enough? Is there any other formality which I need to follow for it?

  2. #2
    Param Array
    Join Date
    Sep 2012
    Posts
    298

    Re: Is it legal to run a business and work in the private firm?

    Dear Friend!

    It doesn't matter that you are doing a small business along with working in private firm. Its totally depends on you and you have to manage your time for both. About taxes, if your income is more than taxable amount definitely you will be needed to pay tax.If you want to escape to pay tax for this you can take loan from bank and purchase properties, take LIC policy or invest in other sector. By this way you can save your taxes, More information about this please contact any CA "How to avoid to pay taxes".

  3. #3
    sidharth9889 Array
    Join Date
    Nov 2012
    Posts
    199

    Re: Is it legal to run a business and work in the private firm?

    yes it is legal to work in private firm and run a business.. regarding taxation of your income is concerned you need to file tax returns of both works you do because it is mandatory if your income is above 20 lakh turnover for the business

  4. #4
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Is it legal to run a business and work in the private firm?

    Quote Originally Posted by Unregistered View Post
    I do work in a private firm and at the same time run a small scale busniess. Is it legal to do that? Do I have to pay tax on both my income? Or only in private firm should be enough? Is there any other formality which I need to follow for it?
    Dear Aspirant,

    Of course, you can run a business & work in a private firm simultaneously. But you have to maintain your working time separetely. Also,you have to show the income from both the sides in your income tax return & accordingly you have to pay the tax as per IT Law.

    The income from your business must be mentioned in the relevent column of the IT return form & Like wise the income from your salary have to be mentioned in the IT return form.The tax will be calculated & paid on the total income from both the sides.

    The current year IT slab is if your taxable abount is up to Rs 2.0 lac,then tax payable is Zero.

    If the taxable amount is more than 2.0 lac & up to 5.0 lac,the tax payable is 10 % of the taxable amount + 3% of the tax as Education and higher education cess.

    Taxable amount more than 5.0 lac & up to 10.0 lac ,the tax will be calculated 10 % of the amount between more than 2.0 lac & up to 5.0 lac,10 % + 20 % tax ot the amount of more than 5.0 lac & up to 10.0 lac + 3 % of the total tax.

    So calculate the tax as paer income & pay to the govt. in order to work in a pvt.Firms & run your business simultaneously.

    Thanks.

    Ashok.

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