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Swady (Digital World) (115 Points)

21 July 2012

Hi,

I live in Kolkata but will be joining a Chennai based company as a SEO Consultant. I don't have to leave Kolkata for doing the job.. its an online job. They will be paying me Rs 144000 annually so is this income taxable? If yes then how?

Kindly show me a detailed workout on how it is happening..

I am really confused! Please help!

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6 Replies

Roshan Thomas (C.E.O ) (356 Points)
Replied 21 July 2012

Income upto 2,00,000 is not taxable. Therefore you will not have any tax liability ( if you have no other source of income)

However you have not mentioned whether you are currently employed. If yes, then your salary from previous employer will also have to be considered. ( You should also intimate the salary particulars to your current employer so that they can properly deduct tax)

Swady (Digital World) (115 Points)
Replied 21 July 2012

Hello Roshan,

Thanks for the advice! Well I am employed right now as a SEO Analyst[Salaried Employee] here in Kolkata but here my annual income is Rs 108000.

I'll be continuing both of the jobs therefore my annual income will be Rs 252000 for this year (2012-13). Since I got the previous job on 4th June 2012 and this new job[SEO Consultant] will be from 23rd July 2012.

So will I be taxable? How?

1 job is a Salaried another is of a Consultant! So help me! :)

Devendra Singh (Chartered Accountant) (487 Points)
Replied 22 July 2012

Originally posted by : Swayam
	Hello Roshan, Thanks for the advice! Well I am employed right now as a SEO Analyst[Salaried Employee] here in Kolkata but here my annual income is Rs 108000. I'll be continuing both of the jobs therefore my annual income will be Rs 252000 for this year (2012-13). Since I got the previous job on 4th June 2012 and this new job[SEO Consultant] will be from 23rd July 2012. So will I be taxable? How? 1 job is a Salaried another is of a Consultant! So help me! :)

Hello Swayam,

No, you will not be taxable in the year 2012-13, as your gross total income of Rs.1,86,000 [from salary(90,000 for 10 months) + from consultancy(96,000 for 8 months)] is not exceeding the basic exemption limit of Rs.2,00,000, hence you will not be having any tax liability and there will not be any need to file your return.

Swady (Digital World) (115 Points)
Replied 22 July 2012

Hi Devendra,

Thanks for the reply.. but then what does Section 194J of https://www.incometaxindia.gov.in/Archive/Tax_Deduction_at_source_18062012.pdf say?? I am really confused.. cause there's a thing of Professional Tax?

Devendra Singh (Chartered Accountant) (487 Points)
Replied 22 July 2012

Originally posted by : Swayam
	Hi Devendra, Thanks for the reply.. but then what does Section 194J of https://www.incometaxindia.gov.in/Archive/Tax_Deduction_at_source_18062012.pdf say?? I am really confused.. cause there's a thing of Professional Tax?

Section 194 J of the Incoem Tax Act 1961 says that TDS is to be deducted in case the professional fee payments exceed Rs.30,000 in the year to any resident...ok...so in your case since the payment exceeds Rs.30,000 hence the payer will have to deduct TDS on the professional fees that will be paid to you in the current year.

But, since your total income from all sources doesnt exceed the basic exemption limit, then apply to your Assessing Officer in Form No 13, to issue a certificate to the payer asking him to deduct no TDS on payments made to you in the current year, hence there will be no TDS and you will not have to file your return....or in other case get the TDS deducted and claim the IT refund after filing your ITR in next year.

Roshan Thomas (C.E.O ) (356 Points)
Replied 22 July 2012

Agree with Devendra -

You have 2 option, apply in Form 13 for issue of certificate of lower/nil deduction of tax or you can wait the whole year and claim refund of tax.

Though both are equally valid option - personally I would suggest waiting for refund. Now a days refunds are received promptly, it is a better option than trying to get a certificate from IT Dept