I. tax computation
This query is : Resolved
31 July 2013
Greeting to all,
An individual has income from salary Rs.5,60,000/- as well as one inocme of Rs. 40000/- by doing some contract work with a company for which company has deducted TDS @1% u/s. 194C.
If I consider 40000/- as other sources I will have to pay self assessment tax @19%(20%-1%) on 40000/- with applicable cess & interest.
My question is
Could I consider this as presumtive income so that my taxable income will be 8% of 40000/-.
How I can reduce my tax liablity & which form should be used.
Thanking You,
Avinash
An individual has income from salary Rs.5,60,000/- as well as one inocme of Rs. 40000/- by doing some contract work with a company for which company has deducted TDS @1% u/s. 194C.
If I consider 40000/- as other sources I will have to pay self assessment tax @19%(20%-1%) on 40000/- with applicable cess & interest.
My question is
Could I consider this as presumtive income so that my taxable income will be 8% of 40000/-.
How I can reduce my tax liablity & which form should be used.
Thanking You,
Avinash
31 July 2013
if your work lies under the specific section of presumptive income then only you may compute income as per rate applicable to presumptive exemption.
If your income does not lie under presumptive income then you are supposed to show the income and pay the tax.
If shown as Income from other sources-ITR 1
If shown as Business income-ITR-2
As per my opinion you should show the income as business income
If your income does not lie under presumptive income then you are supposed to show the income and pay the tax.
If shown as Income from other sources-ITR 1
If shown as Business income-ITR-2
As per my opinion you should show the income as business income
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Presumptive income under 2025 ACT
- TAX AUDIT QUESTION
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
