Income Tax Calculation working from home for an MNC abroad

Income tax 1
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Hi,

I am a female, working from home (India) for a MNC in canada. My Pay is 75,000 Rs per month. They do not divide and give me the salary, they just pay me by cheque or deposit in my account directly.

My Queries: 1. How much tax deduction will be there for me? 2. How can I save money? example: suggest some good investment, etc.. 3. Will it help if i ask my company to provide me a salary statement dividing the salary into basic,hra etc.? They are ready to do it. I just do not know how to divide. Is there any criteria? I live in chandigarh. 4. How to submit tax?

Please help.

Thanks in advance

calculation tax-saving exemption income-tax
1 Answers

Tax computation depends on multiple things.

If you are working as a consultant and not a employee, different rules apply for exemptions. And income tax will be applied as rules for income from Business/profession.

For income from business, there are lots of exemptions which can be considered like telephone bills, food bills, car expenses, electricity etc. A chartered accountant may help you to minimize your income tax.

But, If in case you are being treated as a salaried person. If your company has an Indian presence and they have TAN/PAN number for company and TDS is being deducted from salary for income earned, then tax rules will be different and you can do income tax savings. Exemption for HRA, LTA, medical reimbursements etc can also apply. Company will also have to provide you form-16 after end of year too. To know what all investments you can do for tax savings, you may read this answer : Tax savings

To know how to submit tax and file income tax return, you may read this: File Income Tax Return Form Online

Pankaj Batra5212

Hi, I work as a contractor. How does this change the income tax calculation? since I am new to this area not sure about a good accountant who can help me out on this.

Income tax•

Taxation of contractors is different from salaried employees and income tax is far less as there are plenty of deductions available for expenses incurred. You may contact any tax professional or CA, he will be able to help you in computing and filing income tax return.

Pankaj Batra•
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