I running few sites, and one of my friend (lives in India) helping me to manage those site. as reward i send him some portion of my earning to his bank account direct. now how can i proof that send money as my business expense so i don’t have to pay tax for that amount.
Once I consult with CA he told if the transaction is regular we can show it as business expenses.
here is a Mr. pulkit sir he is a CA he can help you
Ask him to give you an invoice every month for the amount you transfer.
In transfer document select business payment.
I have no idea of USA tax but In India, if you are paying to anyone out of country you need to submit form 2A to bank for business remittances along with invoice and tax deduction forum.
sorry let me clear it again.
- i and my friend both lives in india.
- google money direct transfer to my bank account.
- from my bank account i send him money to his bank account using net banking.
- sending money is not fixed amount, but i send him every month some part of earning.
in that case if i show it as business expense, what kind of document do i need to show tax department in case if they want me to audit/ask me proof.
also i just found this https://www.mycarhelpline.com/index.php?option=com_easyblog&view=entry&id=460&Itemid=91
44AD presumptive tax rules.
according to this if i make 20lakh per year from year. i can show my income is only 1lakh 60K INR
does google adsense earning really consider under 44AD tax?