I would like to know the various taxes payable by a software consultant based in Mumbai/Maharashtra. My limited knowledge is- income tax and profession tax are to be paid by them. For an employee, company deduct and pay their profession tax. For a consultant company deduct i.tax only. consultant have to pay profession tax by them-self to the municipal office. If anybody give more detailed information, it will be helpful for my son. Thanks, valsara.
Income tax and professional tax are the taxes to be paid. Make sure the professional tax deduction is mentioned in his monthly invoices or payslips. If working as a consultant to a company, you can deduct the following from your taxable income: 1. Expenditure on transport: fuel bills, car maintencance and repairs. 2. Expenses on food 3. Expenditure on all work related items: PC purchase or upgrade, stationery, book/magazines subscriptions 4. Depreciation on capital goods purchased for your work: car, PC etc. Make sure you have all the bills for the above. Apart from this you are eligible for all the tax deductions available for regular employees: section 80C and 80G etc. Your income tax will be as per the income slabs after all the above deductions. So there is a huge advantage.
