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what is my tax liability?

27 January 2019

I worked as a technical consultant from May 23 to December 31st.

And my company deducted flat 10% from my salary under section 194J

I wanted to know how much is my tax liability?And if I invest in tax saving schemes under section 80c for 1.5 lac.

Can I rebate the amount that have been deducted from my salary every month?

I know that that one need to pay tax only on 50% of their salary if they are consultant.

Thanks,
Purnima

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3 Replies

Lalit Pandey (Indian Business Researcher) (313 Points)
Replied 27 January 2019

no they are also applicable for Slab rate, as per Income Tax if you have income from Profession your tax shall not be more then 30%

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Rahul Falodiya (16 Points)
Replied 27 January 2019

Hi Purnima,
You have two options:
1. Treat your income as Profit from Profession where you can pay tax at 50% of your receipts assuming total receipts are less than Rs. 50 lakhs. You have to file ITR 4
2. Treat this as income from other source where you can net off your expense incurred in regard to technical consultancy. File ITR1.

For both the options Slab is applicable as you are individual and rebate of Rs. 2500 can be claimed provided your total income is less than Rs. 3.5 lakhs

MY VIEW - Option 1 is beneficial. Same level of work.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 28 January 2019

Attn purnima, as said by Mr. Rahul, if you show your income under other sources, there will be mismatch in income since TDS has been deducted under 194J. so better follow the first option suggested by Mr. Rahul