Comment posted on Income tax calculator for India by Pankaj Batra
@Deepak
In case you are paid by Indian subsidiary of Japanese company as an Indian entity, salary can be structured to include various components. Read more about such components here: http://www.socialfinance.in/questions/82/tax-exemption-component-for-salaried-employee
In case you get amount as lump-sum as a contractor from outside entity, it would be like income from profession/business and not salaries. In that case, there won’t be any tax saving components like HRA, medical reimbursements etc. You need to maintain profit/loss accounts and accounts audit would be required. You would be able to show all business expenses as deductions from profits.
Pankaj Batra also commented
- @Brijesh
Nothing else needs to be sent. - @Goud
Please download excel income tax calculator and compute taxes by putting in monthly income figures. - @Vikram
In case you are working as an consultant and not an employee, company would only deduct 10% TDS on payments.
You will have to file income tax return as income from business/profession. You can deduct all business expenses from income and then pay taxes as per slab rates only on net income. - @John
You should compute your income tax using calculator provided on this page. - @Vikas
1. In case of NRIs, TDS is deducted at 30% rate on whole interest income by banks. There is no basic exemption for TDS. Even if 10 Rs is given as interest, 30% would be deducted as tax. As you are living in India for past two years, you can get your resident status updated with bank as resident Indian.
2. Employer may have deducted taxes as per slab rates. After basic non-taxable exemption (of Rs 2 lakh) and various slabs, effective tax may have been 17%. You would need to compute total income tax for year considering all incomes (interest etc) and see if there is any pending tax liability. You may download income tax calculator and compute taxes yourself.
3. Apart from salary slips, you may also need Form-16 from employer for file income tax return.
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Ok… Thanks a lot sir…