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Tax on income from both salary (192) and professional fees

Tax queries 979 views 2 replies

Hi, My income for the FY 2012-13 consists of salary from govt (192) (about 4 lac) & professional fees from pvt company (194J) (about 7 lac). In case of professional fees, 70,000 tax has been deducted at source u/s 194J (flat 10%).

Now I have to file ITR. Please suggest how do I go about it:

1. Can I keep salary as separate and professional fees as separate. Tax liability in this case is about 90600 (i.e 70,000 + 20600).

OR

Do I have to treat full income (11 lac) as lumpsum and calculate tax as per brackets ( 0-2 lac, 2-5 lac, 5-10 lac, >10 lac). Tax liability in this case is about 164800.

2. Which return form(s) do I have to file ?

3. Any other advice to save on tax.
 

Replies (2)

Dear Geek,

 

Your total income is Rs. 11 lacs and your tax liability will be Rs. 1,64,800.

 

Credit of tax deducted under section 194J will be allowed and tax of Rs. 94,800 (1,64,800-70,000) is payable while filing return of income.

 

Use ITR-4 to file return of income.

 

Followings will be allowed to be deducted from your income.

1) Provident fund and professionl tax deducted from your salary

2) Expenses incurred to carry profession (e.g., stationery, office rent, travelling, electricity,          employees cost etc.)

3) Can claim deduction of Life insurance premium paid, medical insurance premium paid, donations given, investments made in PPF, NSC, repaymet of housing loan etc.

4) Interest on housing loan 

There are deductibles and allowables other than above. 

Above deductions are allowed subject to conditions provided in Income Tax Act, 1961.  

 

Thank you Sir for the guidance.

Further, I would like to know if any proof has to be submitted for availing deductions under ""Expenses incurred to carry profession (e.g., stationery, office rent, travelling, electricity, employees cost etc.)"".

 

Besides, what section/ clause of the IT Act deals with these ""deductibles and allowables"" for professional / technical services.

 


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