Should i pay income tax

BOTH THE INCOME WILL COME UNDER THE HEAD "INCOME FROM SALARY" AND TAXABLE........

Income from full time job will be taxable under the head "Salary"

And income from online work may be considered under "Income from Other Sources" and "Profit & gains from Buisness & profession".

Since, you had to purchase some software for earning that income, and Sec 57(iii) does not allow to claim deduction in repect of any expenditure which is in the nature of capital expenditure, it is better ypu must show it under "PGBP" and claim depreciation on software @ 60%.

I dont know whether u have indirectly incurred any other cost for earning such income, so i am only considering depreciation for computation o0f tax liability.

Tax Liability = (244800-190000)*10.3

                  = 5645 (Subject to any Chapter VI deduction, depreciation or any other expense)

Pay this tax at the time of filing return.

U CAN GET DEDUCTIONS UNDER SECTION 80 C TO THE EXTENT OF RS. 100000/-.....SO IF U PAY ANY LIC PREMIUM  U CAN GET DEDUCTION ON THAT .....WHETHER U PAY THIS OF URSELF, UR CHILDREN, AND SPOUSE. U CAN ALSO GET DEDUCTION ON PROVIDENT FUND IF ANY CONTRIBUTION U HAVE MADE DURING THE A.Y.....

I am paying lic Jeevan anand plan 200000 & started from January 2012

What is annual premium amount for policy?

Its Quarterly i am paying Rs.3000 for Annual its about Rs.12000. Plan is Jeevan Anand - 200000

You will save Rs. 300 tax due this premium in Asst Year 2011-12.