Till date I haven't paid any income tax, since my Income is very low. But this year I am willing to. But I am puzzled with my calculation because after deducting the expenses from my income, zero taxable amount remains. See below my income chart and please suggest-
Income source: Income from Profession
Total Annual Income: Rs.342700/-
- Exemption upto Rs.200000/- , therefore balance taxable amount is Rs.142700/-
---- Expenditure per year were as follows -
---------- Electricity Bill: Rs.9600/-
---------- Broadband Bill: Rs.16800/-
---------- Children's School Fee paid: Rs.6000/-
---------- Purchase of PC/ Printer: Rs.42000/-
------------------ (thus Total Expenditure Rs.74400/- )
---- Other Expenditure are as follows ;
--------------- Staff Salary (Rs.6000 per month) = Rs.72000/-
So my All Total Expenses is Rs.146400/-
So now if I deduct my expenses from taxable amount, then I have: 142700 - 146400 = -- 3700 (i.e. minus balance)
Now please suggest me, Shall I pay tax in such cases? If yes, then how much. If No, then what step shall be taken?
N.B: Most of time I receive my professional fee/income through bank's transaction, so I fear the income tax guys may come knocking my door someday (let's assume) then what should I respond them?
CAclubindia
