Tax for Contractual Job..

[terminater]

Gentlemen,
my father is working with a Healthcare company in a hospital .Father is a doctor.The job is a 2 year contractual job.
Can anyone tell about the tax slab to be followed for contractual job... is it flat 10% of income. or something else....

Thanks in advance..

 

[rdst_1]

Gentlemen,
my father is working with a Healthcare company in a hospital .Father is a doctor.The job is a 2 year contractual job.
Can anyone tell about the tax slab to be followed for contractual job... is it flat 10% of income. or something else....

Thanks in advance..

I am assuming that the company with whom the contract is might be deducting 10% TDS.
If that is the case, here is what he will have to do.

Taxable income = Regular income + Income from job before TDS.

Calculate IT to be paid on this taxable income. Now just deduct the TDS from this value and pay the rest of the tax.

 

[booo]

I did this kind of math in 10 class cbse exams. basically indian tax works like this. Let me try to write an ELI5

Total income - standard deduction = taxable income. now initial tax would be 0 till few lakhs + 10 from there till some few lacks + 20% from there till few more lakhs + 30% from there on... Lets call this initial tax.
now tax exemption on the tax you pay for (80c + 80d etc + house loan interest + house loan premium + medical bills) lets call this tax exemption.

now you have to pay (initial tax - tax exemption)

now tax return would be TDS - actual tax. if its positive, you get money after you submit your return, if its negative, you have to pay the balance before jul 31 using a tax challan in a bank.

 

[terminater]

Thanks for the reply.. i understand the tax slab...but my question is that .. whether the same tax slab applies for contractual job also..... or for contractual job. only professional tax or something else is applied..

 

[benryu]

For individual its the normal tax slab. The company paying salary is required to withhold tax and pay to government (TDS)