Im a software consultant working on contract basis , what all tax liabilities do i have ?

Question

I work on software projects on contract basis , suppose i earn 6 -8 lakhs a year how much tax do i have to pay ? Supposing I have 1 lakh in investment.

I work for a company on contract basis ( yearly contract ) and also take on projects alone on contract basis.

Answer 1

Look, I don't understand the currency of lakhs. However, I have a suggestion for you.

In the U.S.A. there is the Small Business Administration. You can reach them at: 1-800-8-ASK-SBA
Not only can they be of great help to you. But also they run many different types of seminars to help the small business person. Do your homework with them, and I'm certain you'll make my answer a Best Answer.

There is also SCORE = Service Corps Of Retired Excutives.
Look 'em up on Google or Ask.com.
Again, you'll find these people to be a tremendous help to your small business type needs.

Also: Contact the IRS = Internal Revenue Service.
These people have publications on everything! You've got a tax question. Believe me they have a detailed answer for you.

Good Luck.

Answer 2

iam not able to understand ur position of work that is u working in a company as a contract basis or u alone take a job on contract basis and working.

If u take a job and work means then the contractor will deduct tax i.e TDS @5.1% while payment.
How ever if total income exceeds rs.100000 we have to pay tax as per slap rate mentioned by IT Department.If u invest the amount in notified bonds then u can claim deduction U/s 80c,80ccc upto maximum of rs.100000

U earned 8laks and invest 1lak in notified bonds as per mentioned in IT then the following amount is payble by u
Upto 1lakh =No Tax
1lak-150000@10% =5000
150001-250000@20%=20000
250001-1000000@30%=135000
Total tax =160000

Answer 3

you should register yourself as a service provider and pay service tax. you also would have expenses such as transport, books, and payment to people to maintain your office. If after taking all these expenses including service tax, still if you have taxable income, depending on the slab, you have to pay tax.
The said tax also can be avoided by making investment in eligible securities.

Answer 4

You are not liable to service tax as software consultancy does not fall within the scope of any of the notified taxable services which are at the link below:
http://www.allindiantaxes.com/service-tax-taxable-services.php
However, you will be liable to income tax if your income after deducting all business/professional expenditure is more than taxable limit.