ADVANCE TAX

Tax queries 1026 views 6 replies

Hello Friends...

My question is..

If Mr.X is an individual rendering professional services as a Management Consultant.He received Rs.72,500 per month (After Deducting TDS) from his client XYZ Pvt Ltd.He operates his profession from his house.

He have some expenses like :-

1. His Mobile Bill

2.His Electricity Bill

3.His Medical expenses bill

4.His Club fees

5. capital Exp - Purchased a T.V

& Some petty Exp like petrol,cable T.V bill etc etc...

and he have a Car also.

He also invested Rs.75,000 in Provident Fund and Rs.25,000 in LIC.

Now I Want to Know HOW CAN I COMPUTE MR. X TAXABLE INCOME and ADVANCE TAX TILL DATE as he did'nt deposited any advance tax till date....???????

PlZ Solve My Query as soon as possible...

U can send any information related to this to carahul_rdb @ yahoo.com

Replies (6)
Originally posted by :rahul sharma
"

Hello Friends...

My question is..

If Mr.X is an individual rendering professional services as a Management Consultant.He received Rs.72,500 per month (After Deducting TDS) from his client XYZ Pvt Ltd.He operates his profession from his house.

He have some expenses like :-

1. His Mobile Bill

2.His Electricity Bill

3.His Medical expenses bill

4.His Club fees

5. capital Exp - Purchased a T.V

& Some petty Exp like petrol,cable T.V bill etc etc...

and he have a Car also.

He also invested Rs.75,000 in Provident Fund and Rs.25,000 in LIC.

Now I Want to Know HOW CAN I COMPUTE MR. X TAXABLE INCOME and ADVANCE TAX TILL DATE as he did'nt deposited any advance tax till date....???????

PlZ Solve My Query as soon as possible...

U can send any information related to this to carahul_rdb @ yahoo.com

 

Pl. inform me the monthly deduction of TDS from your salary?

 

"


 

you just have to calculate gross income including tds deducted then make a summary of expensed and then do calculation on yearly basis and find net income after deducting expense from gross income. You can not add cap exp in adding expenses. Do the calculation find tax due then less tds deducted if tax payable is more than 5000 then deposited advance tax otherwise no need. If mr x is not having any other income then no need to deposit advance tax

Hi..

You need to first calculate Gross amount received i.e before deducting TDS. Here the deduction will be u/s 194 J. For the expenses you have mentioned you can't claim medical exp. for others u need to check how much pertains to his profession. the whole amount as official will be deducted from the gross receipts. For other expenses such as Cable TV and Dep on TV, you need to prove that the same has been used for official purpose u/s 37(1).

Advance tax will be calculated including interest u/s 234 B & C.

better calculate advance tax with interest and deposit the same to avoid further Demand from ITD.

Regards,

 

if this is the only income he is having, first gross up the amount i.e. inclusive of tds. then deduct all the revenue expenses incurred for the business. therefrom, apply the individual rates of taxes after giving the deduction of Sec,80c and then from the figure coming out of it as tax payable, deduct the TDS already deducted, if that amount coming is more than Rs.5000, than calculate interest u/s 234B and 234C..........

too many answers.Thanks for enhancing my knowledge


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