I want to understand how the tax to be paid if one is having income from salary where TDS is deducted and From taxi (toursan travels) Proprietary business.
Ex. 1. Income from salary eg. 8 lacs.
2. Taxi business turnover 6 lacs. Max net profit leads to 1 lacs.
Please guide.
Any hints on this or possible ways ?
Total taxable income say 9 lakhs. Reduce any deduction claimed under chapter vi(a).
Calculate tax liability over net taxable income, e.g. for 9 lakhs around 1.08 lakhs.
Reduce TDS deducted by employer, that would be your tax liability.
Thanks for quick guide.
For business can i file separate ITR in the name of firm with Proprietor PAN. ?
Which will help to reduce tax.
I came from one scenario where the A person is having 4 small business. and his net income from each small business is 2.5 lacs, Now if he can file separate ITR against each firm name there will no Tax for him (Tax bracket is 2.5 lacs). If he file under personal tax there will tax on 10 lacs. income. which sounds correct since the each business has different capital investment.
Please correct if my understanding is wrong.
" I came from one scenario where the A person is having 4 small business. and his net income from each small business is 2.5 lacs, Now if he can file separate ITR against each firm name there will no Tax for him (Tax bracket is 2.5 lacs). If he file under personal tax there will tax on 10 lacs. income. which sounds correct since the each business has different capital investment. Please correct if my understanding is wrong."
Yes, interpretation is wrong.
Either same person doing 4 different businesses with four PANs !!!!!!1 (may be of his relatives)
Or may all not be propretorships.
One pan, any number of business or other taxable activities, all income is clubbed together for taxability.
You may file ITR4 showing income from salary and income from business. Show deduction for investments made. Compute the tax and reduce it by TDS credit. The balance is your tax liability.
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