income tax applicability


I am working in India for a foreign company and getting my earnings in INR only. It is a contract based work for two years. Monthly fixed return is INR. 110000 and other expenses met will also reimbursed monthly bases. Kindly suggest me what all I need to maintain for accounts? How can I reduce my tax liability and as what I have to consider my earnings (i.e. salary, income from profession, other income, etc...)



asked Sep 11 '11 at 17:43 by shambhu 111

Your income would be considered as income from profession and you would need to file income tax return with ITR-4.

You would need to keep accounts of all incoming amount and outgoing expenses. The a profit/loss statement will be created from this. All expenses like telephone, internet, computer, petrol/car maintenance can be deducted from income to generate total profit. After these expenses a net taxable income will arise. On which you can claim deduction for 80-C savings, 80-D, 80-e etc like a normal salaried class person.

As profit/loss accounting, book keeping is a bit complex for non-professional, I would advise you to take help of any CA or tax professional in your tax filing and saving.

answered Sep 12 '11 at 15:11 by Pankaj Batra 5.2k320


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Asked: Sep 11 '11 at 17:43

Seen: 1,609 times

Last updated: Sep 12 '11 at 15:11