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How much i need to pay tax

rama (manager) (33 Points)

24 February 2012

I'm software employee I given services one company they paid me Cheque per months as Contract employee I got 8 laks 2011-2012 salary (per month 80k nearly).Now I want to File the Tax one of my friend said This will come under 194j Professional services I need to pay Tax nearly 60000 (after deduction of 1,80,000+1,00,000(80c,80ccc schemes))is it correct ? am I reemburse my House Rent paid also per the Ta benfit ?

I'm not understanding if I'm working as employee I can show House Rent+Transport+Telephone Reembursement same job if I'm doing contract employee why I cannot use this benfits?

plz give me sugesstion How much I need pay Tax for this year?

Thanks

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11 Replies

CA Ketan Kothari (Associate Consultant) (86 Points)
Replied 24 February 2012

Hi,

Please clarify whether you were in the payroll of the company or not??

CA Ketan Kothari

Shammi Narang (Employee) (35 Points)
Replied 24 February 2012

If company has paid you for your professional services they must have deducted TDS under Section 194J and issued you form 16A (generated from NSDL) quarterly (within 30 days from end of each quarter) In this case you may file ITR 4 assuming income from business and profession after deducting expenses. You can also claim deduction of house rent paid under section 80GG If Company has not issued you any form 16A, It means the amount you have received may be of salary. In this case also company may have deducted TDS under section 192 which you can check from your online form 26AS So you are firstly directed to check your from 26AS or contact company for details of your salary because you may have received amount after TDS which is need to be correctly calulated

1 Like

rama (manager) (33 Points)
Replied 24 February 2012

Thanks for your Replies.

1)I'm not comes under Payroll of Employee ,I'm Contract Employee of Company (they are paying amount 70000 Rs through check in my account)

2)Company not deducted any amount(they deducted only Professional Tax -200 ) in account they are saying I need to file Tax personally .

so if I'm filing the Tax for 8Laks Rupess (after deduction of 1,80,000+1,00,000(80c,80ccc schemes)

remaining 5 Laks Rupess If I'm filing personaly can I get benfits can show House Rent+Transport+Telephone Reembursement

I will comes under 194 J professional services ....

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 24 February 2012

Dear Rama,

1st the company is on fault not deducting Tax.How come they can do this No TDS ?.This is obligation on company paying.You as professional.Then you must have paid advance Tax.Now pay tax as professional by claiming exp.also one have to see the contract of agreement with you from copmpany.This have word employee only then you will get employee benafits.

CA Ketan Kothari (Associate Consultant) (86 Points)
Replied 24 February 2012

hi,

Company should have deducted tax on the payment made to you. They are at fault.

As they havent deducted tax at source you need to pay advance tax by 31st march to avoid any additional intrest u/s 234.

yes you can claim deduction for House Rent U/s 80GG.(Profvided resendtial)

Transport and telephone expenditure can be deducted as expenses from your proffessional income as expenses for providing service.

If house was office you can claim the rent paid as expenses for providing professional service.

For excat calculation you need to share complete details of your income.

Regards

Ketan Kothari

rama (manager) (33 Points)
Replied 10 March 2012

Thanks for replies experts...

yes here company means 20 members working in software company they said we are small firm we pay the Consultancy service amount you need to pay Tax all those things so they are giving liberty to employee.

my monthly Income=70000 x 10 months =700000(2 months i did not work any where)

Earnings = 700000 Rs

80c = - 85000 Rs

HouseRent(80gg) = -120000 Rs(12k x 10 months)

Telephone/Internet(for professional sevice)= -30000 Rs(3k x 10 months)

Transport = -30000 Rs(3k x 10 months)

so Total 700000-265000= 435000 Rs

minimumearnings (180000)=-180000 Rs

Afetr deduction Total =255000 Rs

for 255000 how much I need to pay Tax other than above items can I show any other Tax deduction items.

THanks

rama (manager) (33 Points)
Replied 15 March 2012

Any body plz give me above post reply How much I need to pay Tax

Thanks

kanagaraj (CHARTERED ACCOUNTANT) (793 Points)
Replied 15 March 2012

Dear Rama,

Treated urself as self employed, you can deduct all the expenses related to yr business. But while deducting u/s 80 GG some conditions are there. Rent paid in excess of 10% of your salary, 25% of the salary, or 2000 pm whichever is least will be taken. So, you are not supposed to deduct the entire rent paid. SEE THE WORKINGS

Attached File : 168718 948566 tax workings.xls downloaded: 142 times