Education and Career Forum

what are the important deductions in profit and gains in business and profession? reply me soon, as after completion of my studies am planning to get on to establishing a business or be a professional like Doctor, Lawyer, Freelancer etc..

You wanted to know about the important deductions in profits in business or income from a profession. Basically you want to know that how much tax you will have to pay for a certain amount of money you earn either from a business or a job? so i would just tell you about the basic taxes applicable on a minimum annual income. so here is the piece of information.

If you are in a business you have to pay your income tax and the Value added tax if you deal in a business of some kind of tangible products like consumable goods, etc. else if you deal in stock broking etc i.e. intangible products then for that separate tax called licence fee has to be paid.

While if you remain in a job or a profession then you will just have to pay income tax on whatever income you do annually. According to present norms the income tax is calculated for an annual income of more than 2 lakhs is taxable.

That means if your annual income is less than 2 lakhs then you need not have to file income tax return. then again if from profits in business or income from job source your tax amount exceeds 1 lakh then you have to pay a surcharge on that of 10%. so these are the basic deductions you will have from income.