• Regarding tax returns

Hi, i used to work as an permanent employee at Global edge software company from April 2017 to August 2017, and worked as independent consultant from September 2017 to March 2018 through Fossilshale embedded technologies. i am an Engineeering professional, resident, individual, Indian.
How much can i save on tax and can claim the benefit of section 44ADA
1 FOSSILSHALE EMBEDDED TECHNOLOGIES PRIVATE LIMITED (section 194J -FORM16A)
total salary:983327.00 tax paid:98334.00 10%flat tax
2 GLOBAL EDGE SOFTWARE LIMITED 	(section 192 - FORM16)
 Total salary:643272.00 tax paid:75076.00 	
FORM NO.16 PART B ( Annexure )
Employee Name PAN No. of the Employee
Vijay Kumar B R - 2301 AIDPR7367J
DETAILS OF SALARY PAID AND ANY OTHER INCOME AND TAX DEDUCTED
1. Gross Salary (a) Salary as per provisions contained in section 17(1) 645,472.00
BASIC 262,071.00
HRA 131,038.00
CONVEYANCE 8,053.00
FLEXI SPECIAL ALLOWANCE 195,398.00
LEAVE ENCASHMENT 17,356.00
UNCLAIMED MEDICAL 4,687.00
UNCLAIMED HEALTH CHECKUP 1,251.00
UNCLAIMED TELE 8,794.00
UNCLAIMED PROFESSIONAL 3,000.00
UNCLAIMED GIFT 624.00
SODEXHO 2200 13,200.00
(b) Value of perquisites under section 17(2) (as per Form No.12BA,
wherever applicable)
0.00
(c) Profits in lieu of salary under section 17(3) (as per Form No.12BA,
wherever applicable) 0.00
(d) Total 645,472.00
2. Less : Allowance to the extent exempt under section 10
House Rent Allowance -section 10 (13A) 16,159.00
Leave Travel Allowance -section 10 (5) 0.00
Conveyance -section 10 (14) 8,053.00
Medical 0.00
Food Exemption 13,200.00
Total 37,412.00
3. Previous employment income as per Form16/Declaration 0.00
3a. Balance (1 - 2 + 3) 608,060.00
4. Deductions :
(a) Entertainment allowance 0.00
(b) Tax on employment 1,200.00
5. Aggregate of 4 (a) to (b) 1,200.00
6. Income chargeable under the head 'SALARIES' (3a - 5) 606,860.00
7. Add: Any other income reported by the employee 0.00
8. Gross total income (6 + 7) 606,860.00
9. Deductions under Chapter VIA
(A). Sections 80C,80CCC,80CCD Gross Amount Qualifying Amount Deductible Amount
(a). Section 80C
1 PF 9,208.00 9,208.00 9,208.00
(b). Section 80CCC 0.00 0.00
(c). Section 80CCD 0.00 0.00
Note:1 - Aggregate amount deductible under section 80C shall not exceed
One Lakh Fifty Thousand rupees
Note:2 - Aggregate amount deductible under the three sections, ie, 80C,
80CCC and 80CCD, shall not exceed One Lakh Fifty Thousand rupees
(B). Other Sections (for e.g., 80E, 80G etc.) under Chapter VIA
Gross Amount Qualifying Amount Deductible Amount
1 Section 80G 400.00 200.00 200.00
2 Section 80D 5,124.00 5,124.00 5,124.00
10. Aggregate of deductible amount under Chapter VIA 14,532.00
11. Total Income (8 - 10) 592,328.00
12. Tax on Total Income 30,966.00
13. Surcharge 0.00
14. Education Cess @3 % (on tax computed at S.No. [12+13]) 929.00
15. Tax payable (12+13+14) 31,895.00
16. Less: Relief under section 89 (attach details) 0.00
17. Tax payable (15-16) 31,895.
Asked 6 years ago in Income Tax

Hi,

Your professional income will be 50% of 983327 and your salary income will be as per form 16.

You will have to pay tax as per slab rate on the combined income.

Please let us know if you have any specific question.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi

It's difficult to go through all data.

I hope question is regarding claiming 44ADA on consultancy income.

Firstly, make sure you are falling under eligible profession to claim presumptive taxation under section 44ADA. Under this section, you can claim 50% of the gross receipts from consultancy as expenses.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

Hi,

It is very difficult to go through all of this data. However if you are eligible for 44ADA then you can claim 50% expenses on your total income. Please let me know if you have any specific questions that you may want to clarify.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi,

Hope you are doing well !

It is very difficult to go through all of this data.

If you are providing eligible professional services covered u/s 44ADA then you can opt presumptive taxation scheme.

Please find below the relevant provision:

The below-mentioned professions can avail benefits of Presumptive Taxation Scheme under Section 44ADA:

Engineering

Legal

Architectural profession

Accountant

Medical

Technical consultant

Interior business

In case of a person adopting the provisions of section 44ADA, income will be computed on a presumptive basis, i.e. @ 50% of the total gross receipts of the profession. In other words, total gross receipts from profession should not exceed Rs 50 lakh for a financial year.

Under the Section 44ADA, the assessee is allowed the following deductions:

All deductions from sections 30 to 38 (including depreciation and un-absorbed depreciation / allowances) shall be deemed as allowed and no further deduction is allowed under any of these sections

Written down value (WDV) of depreciable assets shall be recomputed deducting depreciation which is deemed as allowed.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Dear Sir,

For Professional income, you can claim the benefit of section 44ADA and declare 50% taxable income of your total gross receipts.

For salary income, it is to filed normally under the provisions of salary.

You can use ITR-4 for the above income.

Thanks

Vivek Kumar Arora
CA, Delhi
4845 Answers
1038 Consultations

5.0 on 5.0

Dear all pls avoid to ask question in too much detail after all every one time has value

Nitin Jain
CA, Jaipur
214 Answers

4.7 on 5.0

Hi,

yes you can opt for 44ADA,use itr 3 for the same.

If you are opting 44ADA then you have to declare 50% of your gross receipts as income .

For next yr tax planning,you can do investment qualifying for 80C deduction since 150000 can be claimed under this.

You only have pf ,can take 5 yr term deposit,KVP, PPF, LIC ,some mutual funds are also under this.,

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA