If I am receiving 15L - 10% TDS (1350000) as salary a year, but not employed i.e I am not in the muster roles of the company and not entitled to any employee benefits like, PF, Gratuity, etc., how much tax I need to pay considering below yearly investments... "Housing Loan Interest component" 117,160.00 "Housing Loan Principal component" 30,416.00 "LIC Premium including Pension Plan" 186,418.00 PPF (SBI) 50,000.00 MediClaim Policy 24,000.00
Income from business - 1500000
Housing loan interest - - 117160
Other all deduction - - 150000
Mediclaim - - 15000
Total income - 1217840
Total Tax on this including all cess - 196060
I have assumed you are individual male resident assessee for the above calculations. And I also have not gone into the advance tax provisions
As per the receipts you are also liable for service tax. please see to it.
Dear Sir,
Firstly if you are not on the payroll of the Company then you are a Professional/ Contractual Employee and hence liable for Service Tax.
In that case I assume that the salary of 15L is inclusive of Service Tax again in which the first 10 lacs are exempt as this is your first year.
So Amount of Service Tax payable would be Rs.15L - Rs.10L (Rs.5L *14/114) = RS.61,404/-.
Now Comes Income Tax.
Gross Income - (Net of Service Tax) Rs. 14,38,596/-
Less: Housing Loan Interest - Rs. 117,160/-
Less: Deduction u/s 80C:
HL Principal - Rs.30,416/-
LIC Premium - Rs.186,418/-
PPF - Rs. 50,000/-
upto a maximum of 1,50,000/- Rs. 150,000/-
Less: Deduction u/s 80D:
Medical Insurance Rs. 15,000/-
Total Taxable Income : Rs.11,56,436/-
Net Tax : Rs. 177,089/-
Less: TDS Rs. 150,000/-
Net Tax Payable Rs. 27,089/-
Please note Advance Tax Provisions shall apply and interest u/s 234 shall apply.
The above draft is prepared considering the Assessee is not a Senior Citizen and the Medical Insurance premium is also not paid for a Senior Citizen and paid in any mode other than cash.
Other Sources Income are also not considered.
Many Thanks Rohit R Sharma, So I need to pay additional tax of Rs. 88,493 (61,404 + 27,089) ? If so under which Chalan should I pay it? Secondly , I was not getting salary for 2 months in FY 2014-15, so how will be the calculation in that case.
Can anyone answer the follow-up question...
As you have said that you were not getting salary for 2 months, I assume that you were not under employment for that period.
In that case the Service Tax amount would reduce by Rs.30,900/-. So the amount payable would be Rs. 30,504/-.
On the Income Tax front you will receive a refund of approx Rs.9,240/- considering the TDS deducted would also be for 10 months i.e Rs.125,000/-.
2. To pay your Service Tax amount you will first need to get yourself registered and take a Service Tax Number, then you can make the payment with GAR-7 challan with interest and penalty.
COMPUTATION OF TOTAL INCOME AND TAX LIABILITY FOR F.Y.2014-15
CASE-1 : CONSULTANCY INCOME RECEIVED FOR 12 MONTHS
Income From House Property (1,17,160)
Consultancy Income 15,00,000
Gross Total Income 13,82,840
Less : Deductions under Chapter VI A
U/s 80C (1,50,000)
U/s 80D (15,000)
Total Income 12,17,840
Tax Thereon 1,85,352
Add : Cess @ 3% 5,661
1,90,913
Less : TDS (1,50,000)
Balance Tax Payable 40,913
Add : Interest U/s 234 2,328
Therefore, Total TAX LIABILITY 43,241
CASE-2 : CONSULTANCY INCOME RECEIVED FOR 10 MONTHS
Then in that case you will be entitled to a TAX REFUND of Rs.8,030 /-
The payment received by you seems to be on account of professional income. The same can be checked from the tds certificate received by you. It would be in form 16A on a/c of Fees for Professional / Technical Services. In such a case you are eligible to claim expenses towards Salary, Conveyance, Depreciation etc from the total Receipts of Rs15,00,000/-. Income Tax would be payable on your net income after claiming all expenses.
# You are also liable to register your-self with Service Tax Deptt as your professional receipts have crossed 10Lacs. Get your-self registered and start charging Service Tax to your clients
I don't know about your answer of Mr. Rohit Sharma. How he arrived. But you have to pay taxes under Challan 280
The TDS @ 10% implies that the company is treating you as a professional and making payments for your professional services and not as an employee. Your income will then be assessed under the head : " Profits & gains of business or profession". You may need to explore whether the presumptive tax will be applicable to you, as your turnover is Rs 15 Lakhs only. Even otherwise, you can claim reasonable expenditure actually incurred for the purpose of earning your income, such as salaries, rent, power, communication expenses etc.
The exemption u/s 80C is limited to Rs. 1 Lakh ( which is enhanced to Rs 1.5 Lakhs from the current financial year). Thus your claims towards Repayment of housing loan, PPF and LIC contribution will be restricted to Rs 1 Lakh only.
You will be eligible to claim interest on your housing loan under the head : "Income from House property". If the property is let out you need to offer rental income also.
The deduction towards mediclaim policy u/s 80D will be Rs 15K towards insurance premia for policies for self and family and another 15K for parents.
As regards your follow up question, you can make online payment of tax through income tax department web site. As a professional you can offer your income on receipt basis and if you have not received salary (?) for two months, you need not offer that income now and offer it as and when received.
