I am a doctor working at a medical college for the past 6 months now (appointed on a contract basis for a period of 1 year as per the appointment letter). The consolidated pay being Rs.50000/- per month. Just now Ihave realised that my pay is actually being given as "professional fees". That is a different issue all together that a doctor appointed in a medical college needs to be given as "salary" rather than "professional fees" as per MCI norms. But I guess, lets just look past that issue, because as far as Income Tax department is concerned, salary/professional fees differences do not matter as long as you pay tax.
Now for this financial year i would recieve only Rs.400000/- in total as ""professional fees"....because i started working only from August 2015 and i have not been employed anywhere else before this in this financial year. I don't know what is the tax emeption limitfor this year-whether its Rs.2 lakhor 2.5lakhs. I am a male and is not a senior citizen. But whatever be the limit, my tax would come to RS.2000O or Rs.15000/- only (depending on the exemption limit). If you include my LIC policies,health insurances and other policies, the total savings would come to about Rs.90000/-. Which means for this finacial year, I need to pay only Rs.6000-Rs11000 (depending upon the tax exemption limit to which i am applicable). As of now,my office(ie employer) is cutting Rs.5000/- every month from my salary as TDS.....ie @ 10% rate according to section 194J of the Income tax rules (i hope thats the relevant section).
I understand that I could get a refund from the IT department later on.
BUT WHAT IAMINTERESTED TO KNOW is whether there is a method (or income tax rules) which I could quote to stop anymore TDS from being collected.. Not to mention the fact that they have already collceted RS.25000/- as TDS....which is very much above the total tax to which I am liable to pay.
FURTHER- if i factor inmy travelling expenses, there won't be any tax to pay at all
Please help !!!
CAclubindia
