The number of freelancers and consultants is rapidly increasing in India due to wider internet access. Many prefer freelancing as it allows them to wo...
Question
The number of freelancers and consultants is rapidly increasing in India due to wider internet access. Many prefer freelancing as it allows them to work on their own terms and often earn more than a traditional 9-5 job. However, tax filing is a major concern for them. According to Indian law, freelancers must pay income tax on their earnings. Additionally, if their gross income from freelancing exceeds ₹10 lakh, they are also required to pay service tax at the government-prescribed rate. A freelancer is defined as a self-employed individual not committed to any long-term employer or client.
Based on the above passage, consider the following inference:
"If a freelancer's income exceeds ₹10 lakh, they are liable to pay service tax."
What is the correct evaluation of this inference?