How much income tax & service tax

Hi,

I work as consultant (FY2014-15) and not in the muster roles of the company and not entitled to any  employee benefits like, PF, Gratuity, etc.

I got around 1,232,000 as salary during FY2014-15. TDS of 75,000 was deducted from this during the year and I also paid advance tax of 15,000 during the year.

Can you let me know how much additional tax (income tax and service tax) I need to pay, after deducting the investments?

Below are the investments I have made in FY2014-15

Housing Loan Interest component	117,160.00
Housing Loan Principal component	30,416.00
LIC Premium including Pension Plan	186,418.00
PPF (SBI)	50,000.00
MediClaim Policy	24,000.00
Tution Fee	34,800.00
Asked 1 year ago in Income Tax from Bangalore, Karnataka
This is a repeat query that was already answered earlier. For your ready reference, my reply is reproduced as under:

The TDS  @ 10% implies that the company is treating you as a professional and making payments for your professional services and not as an employee. Your income will then be assessed under the head : " Profits & gains of business or profession". You may need to explore whether the presumptive tax will be applicable to you, as your turnover is Rs 15 Lakhs only.  Even otherwise, you can claim reasonable expenditure actually incurred for the purpose of earning your income, such as salaries, rent, power, communication expenses etc.   

The exemption u/s 80C is limited to Rs. 1 Lakh ( which is enhanced to Rs 1.5 Lakhs from the current financial year). Thus your claims towards Repayment of housing loan, PPF and LIC contribution will be restricted to Rs 1 Lakh only.

You will be eligible to claim interest on your housing loan under the head : "Income from House property". If the property is let out you need to offer rental income also.

The deduction towards mediclaim policy u/s 80D will be Rs 15K towards insurance premia for policies for self and family and another 15K for parents.

As regards your follow up question, you can make online payment of tax through income tax department web site. As a professional you can offer your income on receipt basis and if you have not received salary (?)  for two months, you need not offer that income now and offer it as and when received.
B Vijaya Kumar
CA, Hyderabad
290 Answers
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  Talk to B Vijaya Kumar
Since you are not employed Your income from profession needs to be worked out before arriving at your taxable income. depending thereupon tax liability shall be worked out.
Rajesh Kabra
CA, Thane
9 Answers
Not rated
  Talk to Rajesh Kabra
In your question the date of payment of Advance tax is not mentioned. Thus we have taken it as 15-03-2015.

After calculation your tax is arrived as follows

Income from Salaries/Professional fees  - 1232000
Less : Interest on Housing Loan              -   117160
Less : Deduction u/s. 80C                        -   150000 - Maximum allowed
Less : Deduction u/s. 80D mediclaim       -     15000 - Maximum allowed

Net Income                                                -    949840
Tax thereon        113267 including cess
Less : TDS            75000
Less : Adv. Tax     15000
Add : Interest          1957   late payment of Advance tax/ deferrement of adv. tax

Total Tax payable   - 25220
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani
Your income tax liability depends upon the amount of expenses you are claiming for earning the professional income. I suggest that you can use the software provided in the Income Tax Department portal @ https://incometaxindiaefiling.gov.in  after registering yourself and logging in for knowing your tax liability after claiming expenses.  

For the payment of service tax you need to register yourself with the service tax department. The service tax can also be paid online. The web site address of service tax portal is https://www.aces.gov.in
B Vijaya Kumar
CA, Hyderabad
290 Answers
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