Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Contractual Income Tax
04-02-2010, 09:08 PM
Post: #1
Contractual Income Tax
Tell me which case is correct???



<b>Case1</b>

January 2010 Salary 300,000 (Income Tax 300,000x6%= 18,000)
February 2010 Salary 300,000 (Income Tax 300,000x6%= 18,000)

Then there is change in March 2010 i.e. salary will be 350,000 from January 2010.

Total Tax He/She paid till Feb 2010 = 18000+18000 = 36000

Now in March Income Tax calculation will be

350000x6 (January to June)= 2100000*6%= 126000

126000 (Total Tax of 6 months)

126000-36000 (less Jan & Feb Tax) = 90000

Now Total Income Tax/remaining number of months

90000/4 = 22500

<b>March income tax will be 22500</b>

<b>Case 2</b>


March 2010 income 350000+100000 (Arrears)=450000

450000x6%= 27000

<b>March tax will be 27000</b>
Visit this user's website Find all posts by this user
Quote this message in a reply
04-03-2010, 10:27 PM
Post: #2
 
Is this the Salary payment or payment against the services rendered?

<b><u>In case of Salary</b></u>
- The tax rate should be change,i.e. not 6%.

<u><b>In case of Services</b></u>
- If you are provided the inovice against the services or there is a contract in both cases, your case 2 is right. Means the March invoice should be 450,000 (including arrears) then the tax will be charge on whole amount i.e. 27,000/-. and for the April and onword this will be 21,000/- (350,000 x 6%).

- Jan Tax 18,000/-
- Feb Tax 18,000/-
- Mar Tax 27,000/-
- Apr Tax 21,000/-
- May Tax 21,000/-
- Jun Tax 21,000/-
<b> TOTAL 126,000/-</b>
Visit this user's website Find all posts by this user
Quote this message in a reply
04-06-2010, 07:01 PM
Post: #3
 
Thanks for the reply.
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)