I am self employed professional, My gross receipts are Rs 9,98000.
and these are my details...
Expenses - 150000
Home loan - 150000
80 C - 100000
My Mediclaim - 8000
Parents mediclaim - 20000
So, how much will be my Gross Net Income and how much tax to pay?
Hi Ashish,
Computation will be:
Net Profit as per P/L Account 9,98,000-1,50,000 8,48,000
Income under the head PGBP OR GROSS TOTAL INCOME 8,48,000
Less: Deduction under Chapter VI A
Section 80C (max. of Rs. 1 Lac) (1,50,000+1,00,000) 1,00,000
Section 80D: (8,000+20,000) 28,000
Total Income/ Taxable Income 7,20,000
Tax on above Income 1,20,000
Add: Education Cess @ 3% 3,600
Total Tax Liability 1,33,600
Assumptions:
1) Case is of AY 2010-11.
2) Home Loan Rs. 1,50,000 means home loan principal repayment.
3) Being a professional, if you are covered under Service Tax then you are required to get registered under Service Tax because you gross receipts exceed Rs. 9 Lacs.
Thanks Sunil for explaining. Please tell me what is Rs 1,50,000 in this (max. of Rs. 1 Lac) (1,50,000+1,00,000)
Secondly i will not deduct my expenses to calculate the taxable income.
I am freelancer and give design services to overseas client.. so i came under Service Tax registration?
CAclubindia
