In the present financial year, I worked as a consultant for 5 months and as an employee for the remaining 7 months.
My earnings are 10 lacs and 10 lacs respectively. But as a consultant, I ended up spending 15 lacs as expenditure, such as wages etc.
Is it right to say, my net income is 5 lacs only, and tax be calculated on 5 lacs?
TIA
Krishna
Income from salary is taxable under the head 'Salary' & the income as consultant is taxable under the head 'Business or Profession'. According to Section 72, loss under the head business income can not be set off against salary income. And hence the net income for this year will be Rs. 10,00,000 & current year's business loss will be carried for next 8 Assessment years which can be set off only against business profits.
Thanks for the answer.
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