I have a full time oppurtunity with 12lacs CTC and a one year contract oppurtunity that will pay me Rs 1.20lacs a month(sum 14.4 lacs) for the year(They will deduct only the std deduction rate of 5.1% and give the rest to me). The contract can be renewed upon completion based on mutual agreement. I have same leave package with both oppurtunites. Both are similar oppurtunities.Which should I choose? I am in a quandry and I need to decide before Friday this week. Please help me decide. I am not sure whether I will make more money with the Contract oppurtunity with the way Indian tax is laid out. Can someone please tell me what are the deductions(like house rent,phone bills,car interest payment,car depreciation etc) that I can deduct for the contract position and what would be my net effective tax. I really appreciate any inputs. Any justifications are welcome.
2007-02-07 06:02:17 · 2 answers · asked by Santhosh K 1 in Business & Finance ➔ Taxes ➔ India
it all depends upon your priorities man.
According to the income atx act you will be charged tax at the same rate but in salary you can claim certain deductions like HRA, Conveyance Allowance, LTA extra.
Also you will be eligible for the bonus and similar things.
In contract you can claim deductions like claiming the dep on the equipments used by you in your professional pursuit.and also claim expenses like conveyance mobile bills etc.
Tax will be around the same in both the cases.
Dont think you will escape the tax liability if you join them on contract basis. you will have to pay appropriate tax at the time filling your annual income tax return.
But still yu can choose contract if there is no problems in that option as you can save tax and earn more
For more contact me at agarwalapurav@yahoo.co.in or 09868977212(in delhi)
2007-02-07 19:07:30 · answer #1 · answered by apurav a 3 · 1⤊ 0⤋
go for it. pick a s best anser and ill do the same for u
2007-02-07 14:05:05 · answer #2 · answered by bodymod_666 1 · 0⤊ 0⤋