Tax calculation on professional income?

I need help in tax calculation.

I am working as a professional in an IT company. I get 720000 as gross package from the company. They will be deducting a certain amount of TDS from the monthly income.

I want to know what are the other taxes which I need to pay and how do I calculate that? Specially NET monthly income. Also is there any advantage in NET monthly salary if I take this package as a salaried person?

Thanks for any help.

Tax calculation on professional income?
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One Reply to “Tax calculation on professional income?”

  1. It dose not make any difference. You havve to pay the same tax in both the ways.

    If you are a male <65 years of age: For this running financial 2007-08 (1-4-2007 to 31-3-2008) the tax for you is as follows:

    7,20,000 Your salary (in any way)
    1,10,000 Less Tax free amount for Male <65Y.
    6,10,000 Taxable income

    0,04,000 from 1,10,000 to 1,50,000 @10% on 40,000
    0,20,000 from 1,50,001 to 2,50,000 @20% on 1 lakh
    1,08,000 from 2,50.001 to 6,10,000 @30% on 3.6 lakhs
    1,32,000 Tax
    0,03,960 Edu. Cess @3% on 1,32,000
    1,35,960 is the net tax to be paid by you.

    If you save in tax saving investments (U/s80c) like LIC, PPF, NSC, Post office deposits (5 years & more) etc., then you can about 30,000 tax (1,35,960-30,000= 1,05,960). Maximum you can invest Rs.1 lakh in investments U/s 80C.

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