Tax on income from salary (192) & professional/ technic fees

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The Geek (Querist)
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27 March 2014 Hi,

My income for the FY 2012-13 consists of salary from govt (192) (about 4 lac) & professional fees from pvt company (194J) (about 7 lac). In case of professional fees, 70,000 tax has been deducted at source u/s 194J (flat 10%).

Now I have to file ITR. Please suggest how do I go about it:

1. Can I keep salary as separate and professional fees as separate. Tax liability in this case is about 90600 (i.e 70,000 + 20600).
OR
Do I have to treat full income (11 lac) as lumpsum and calculate tax as per brackets ( 0-2 lac, 2-5 lac, 5-10 lac, >10 lac). Tax liability in this case is about 164800.

2. Which return form(s) do I have to file ?

3. Any other advice to save on tax.

Sanjana

Sanjana (Expert)
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27 March 2014 1. You have to add up the Total Income. 4 lakhs would go under the head Salaries and Professional Fees would go under the head Income from business and Profession. The entire Income will be merged and the Tax would be calculated on the Total Income at the slab rates for individual. Say if your Total Income is Rs. 11 lacs, tax would be Rs. 1,64,800 Tax to be paid Rs. 1,64,800-70,000 = 94,800

2. ITR 4 to be filed since you have Income under the head Business and Profession

3. Yes, you can claim several Expenses from you Profession Income like Depreciation of your Motor Car and Fuel Expenses to the extent you can show that you are using it for earning Professional Income (Travelling Expenses if you do not own a Car), Newspapers, Magazines Cost used to update yourself etc. and any other Expenses incurred by you for earning the Professional Income. Further you can claim deducction under Chapter VI-A to save your taxes.

It is important to note here that due date of filing Return of Income for the FY 2012-13 was 31/07/2013 (or upto time extended, if any). You can now file a Belated Return u/s 139(4), the due date for which is March 31, 2014.

File the Belated Return correctly since a Belated Return cannot be revised. Seek for a professional Chartered Accountant.

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The Geek

The Geek (Querist)
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27 March 2014 Thank you for the response Madam.

1. In case I had only professional Income, did I have to pay only 70,000 or as per usual salary brackets?
2. In order to avail the expenses ( i.e. Travelling, Telephone, Internet etc), what proof is required to be submitted.

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pranav

pranav (Expert)
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28 March 2014 good answer by sanjanaJi.. There is no seperate slab for professional fees income. As sanjanaJi said total 11L will be taxed. If u have only professionsl fees income than u will be in slab of 20%, and accdingly tax will be calculated. TDS does not mean u had discharged fill tax liability so your total tax liability will get reduced by 70000/-