professional tax for doctors?

Originally posted by : Bunty
	My friend has started his clinic 2 years ago. But his income was not taxable in first year and this FY it becomes taxable. He contacted some CA and he asked him lot of documents for filing a tax. He asked to pay professional tax to him and also said that for first year he needs to pay interest as well on the professional tax. is that true? He also asked all kinds of banking transactions he has done in last 2 years with whatever new things like vehicle he purchased on his name? is this part of some kind of audit? Should he provide all these documents to him?

yes , CA need all the documents to compute doctors income .

In case of salaried person ,taxable amount is salary only . But incase of professionals( like doctors,lawyers,auditors,architects,beauticians,)  taxable income has to be computed .Taxable income is computed after deducting expenses(Like ,salaries of employees, rent of clinic,seminar fee,travelling expenses) from the income received from the patients.  If the vehicle  purchased by the doctors is used for  traveling from home to hospital   petrol expenses ,driver salary, repairs&Maintanance ,depreciation on car can be  deducted from his income .Balance amount only chargeable .