I am an Indian citizen and I work from India as a freelancer for an U.S.-based IT company. I am getting monthly payments directly into my Indian bank account. My colleagues' monthly payment come to my account first, and I pay them later.
I have not registered any company here in India. The monthly payments are fixed and arrive without me raising any invoice/PO for it. Payments come every month based on a mutual understanding, for the services I provide.
How do I pay tax here in India? What is the criteria for these transactions to be valid as per the Income Tax department? Getting money from the U.S., directly into my Indian bank savings account ... is this legal or not..?
What is the solution for people like me who don't have a registered firm here in India and as a freelancer are getting monthly payments directly to their Indian bank accounts without raising invoice or purchase order? Please advise.