How is rental income taxed in India?

My parents (who live in Mumbai right now) plan to relocate to a place outside Maharashtra. They plan to give their Mumbai residence on rent and live in a rented house as their new residence in the new place? They are both senior citens. Would they be required to pay tax on their rental income they earn in Mumbai?

How are independent software consultants taxed on their income in India?

If I am an independent software consultant with variable incomes and variable+multiple expenses. How do file my incomes and how would I be taxed?
If I am an independent software consultant with variable incomes and variable+multiple expenses. How do file my incomes and how would I be taxed?

I would specifically like to know, what all categories are there under which I can show my expenses.
I want to evaluate 2 options in order to check which one would leave more money in my hands:

1] if working as a full time employee with ~33%TDS

OR

2] working as independent consultant with 10% TDS … and show the expenses individually.

Please guide.

How profit earned on a flat booking taxed?

I had booked a flat in the year 2007. After that construction started. The construction is now complete. I wish to sell the same to a buyer even before the flat being registered in my name, i.e. the sale deed will be between me, the builder, and the buyer, which will be executed in Feb 2012. I will earn some amount from this sale. How the income tax will be levied on this transaction. Whether it will be a capital gain, and if so, short term or long term?