Income tax on professional services rendered

Hi Akshay,

Thanks for your reply. My taxable income from my current company was 11L + 1,25000 was given from startup (total amount for services).  They deduced 10% and gave me 112500.

Can you please tell me how much interest I have to pay and for how many months or amount.

Regards,

Rahul

You may file ITR-4. You are carrying on a profession on the side and earned 1.25lacs by providing professional services to startup. You may avail deductions in earning your professional fees and claim TDS as well. Your employer must be deducting TDS on salary. You can add the income from profession and compute the total tax, and deduct TDS from the tax liability. 

As you are coming under tax bracket of 30% then on your professional charges 30% tax is leviable.10% is already deducted by way of TDS now you are supposed to pay 20% on 125000 i.e.25000.As far as your salary income is concerned your employer has surely deducted tds on that so no tax to be paid on salary income.Your balance tax liability is Rs.25000 and interest to be computed on Rs.25000

As you are coming under tax bracket of 30% then on your professional charges 30% tax is leviable.10% is already deducted by way of TDS now you are supposed to pay 20% on 125000 i.e.25000.As far as your salary income is concerned your employer has surely deducted tds on that so no tax to be paid on salary income.Your balance tax liability is Rs.25000 and interest to be computed on Rs.25000

Thanks to all for your quick reply.

Parul/Akshay,

I understand from your reply that I need to pay interest on the tax. Can you please let me know How you have calculated the interest with what percentage and for how  many months. from 1st Aug or from 1st April. Payment was made to me on feburary but from incometax portal it shows  me the that startup has made me the payment on 31st Jul (I guess they forget to pay it on time so shown the payment on 31st Jul).

Thanks in advance.

Regards,

Rahul