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?
Rate these answers

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.

    http://www.rediff.com/getahead/2005/dec/26tax.htm





Leave a Reply

Your email address will not be published. Required fields are marked *