Ashish (Professional) (117 Points)
30 April 2010I am self employed professional, My gross receipts are Rs 9,98000.
and these are my details...
Expenses - 150000
Home loan - 150000
80 C - 100000
My Mediclaim - 8000
Parents mediclaim - 20000
So, how much will be my Gross Net Income and how much tax to pay?
SUNIL GARG
(CHARTERED ACCOUNTANT)
(175 Points)
Replied 30 April 2010
Hi Ashish,
Computation will be:
Net Profit as per P/L Account 9,98,000-1,50,000 8,48,000
Income under the head PGBP OR GROSS TOTAL INCOME 8,48,000
Less: Deduction under Chapter VI A
Section 80C (max. of Rs. 1 Lac) (1,50,000+1,00,000) 1,00,000
Section 80D: (8,000+20,000) 28,000
Total Income/ Taxable Income 7,20,000
Tax on above Income 1,20,000
Add: Education Cess @ 3% 3,600
Total Tax Liability 1,33,600
Assumptions:
1) Case is of AY 2010-11.
2) Home Loan Rs. 1,50,000 means home loan principal repayment.
3) Being a professional, if you are covered under Service Tax then you are required to get registered under Service Tax because you gross receipts exceed Rs. 9 Lacs.
Ashish
(Professional)
(117 Points)
Replied 30 April 2010
Thanks Sunil for explaining. Please tell me what is Rs 1,50,000 in this (max. of Rs. 1 Lac) (1,50,000+1,00,000)
Secondly i will not deduct my expenses to calculate the taxable income.
I am freelancer and give design services to overseas client.. so i came under Service Tax registration?
CAclubindia
