QUESTION-
Hi, I am working in a company as an full time employee on their payroll and I have been issued a Form 16. Beside this I render my engineering services (software) to small startups in india as a part time. In this year Feburary (Financial year 2012-2013), I provided my services to one small startup in india and received a payment of around Rs 1,25,000. As per IT rules they deducted a 10% TDS and gave me remaining. Since I was not much aware I filed a ITR 1 (with my current company F16) on this year before July without acknowledging that payment. I was about to send the filled signed ITR form to cpc bangalore but reliased that the payment made to me by the startup is reflecting in incometaxportal.org under my PAN number. Now can somebody please guide me what are the next steps for me. How much Tax I have to pay on the payment received after the 10% deducted by startup and I read somewhere I need to pay some penalty tax, how much amount I have to pay for that. From my current company my taxable income is falling more than 10L so I am in a 30% tax bracket.
My taxable income from my current company was 11L + 1,25000 was given from startup (total amount for services). They deduced 10% and gave me 112500. Can you please tell me how much interest I have to pay and for how many months or amount.
Thanks in advance.
ANSWER-
Hi,
1. The first step should be to add your receipts from Engineering Services with your Salary Income and then calculate tax at slab rate. Deduct the TDS already deducted, the amount left should be added up with interest and should be deposited into Income Tax Department immediately.
2. Then you should file a revised Income Tax Return, taking the receipts from your Consultancy Service.
3. The penalty proceeding does not originate on everybody, file your return immediately and it is upto Income Tax if they want to start penalty proceedings.
4. Tax would be Rs. 29698.00(Tax Rs. 26125 + Interest Rs. 3573) if you take Rs. 125,000.00 as your income but since this would your business/other source income you can claim expenses to earn this income and your tax would decrease accordingly.
Hope this will solve your problem. For further query comment on this post or contact us at:
ngoandtaxconsultant@gmail.com
Hi, I am working in a company as an full time employee on their payroll and I have been issued a Form 16. Beside this I render my engineering services (software) to small startups in india as a part time. In this year Feburary (Financial year 2012-2013), I provided my services to one small startup in india and received a payment of around Rs 1,25,000. As per IT rules they deducted a 10% TDS and gave me remaining. Since I was not much aware I filed a ITR 1 (with my current company F16) on this year before July without acknowledging that payment. I was about to send the filled signed ITR form to cpc bangalore but reliased that the payment made to me by the startup is reflecting in incometaxportal.org under my PAN number. Now can somebody please guide me what are the next steps for me. How much Tax I have to pay on the payment received after the 10% deducted by startup and I read somewhere I need to pay some penalty tax, how much amount I have to pay for that. From my current company my taxable income is falling more than 10L so I am in a 30% tax bracket.
My taxable income from my current company was 11L + 1,25000 was given from startup (total amount for services). They deduced 10% and gave me 112500. Can you please tell me how much interest I have to pay and for how many months or amount.
Thanks in advance.
ANSWER-
Hi,
1. The first step should be to add your receipts from Engineering Services with your Salary Income and then calculate tax at slab rate. Deduct the TDS already deducted, the amount left should be added up with interest and should be deposited into Income Tax Department immediately.
2. Then you should file a revised Income Tax Return, taking the receipts from your Consultancy Service.
3. The penalty proceeding does not originate on everybody, file your return immediately and it is upto Income Tax if they want to start penalty proceedings.
4. Tax would be Rs. 29698.00(Tax Rs. 26125 + Interest Rs. 3573) if you take Rs. 125,000.00 as your income but since this would your business/other source income you can claim expenses to earn this income and your tax would decrease accordingly.
Hope this will solve your problem. For further query comment on this post or contact us at:
ngoandtaxconsultant@gmail.com
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