Percentage of income allowed as deductions

Hi,,

I am working as a freelancer and independent consultant in the software domain and most of my clients are from abroad. I have an office and pay bills for internet/petrol/travel for my business for which I have hard copies. As far as I know these expenses can be deducted from my taxable income. However I also pay people for some jobs that I outsource to them. Can these be deducted from my income as well?   For instance I get 10L as income in my bank accounts can I show 8L as expenses? What percentage of total income can I show as expenses?

Please let me know.

Thanks,

Aakash