38 year lady, working as a consultant in a medical firm, getin(NOTE-not salary) annual income of Rs 9.6 lakhs.


Question:
invested in life insurance,elss & mediclaim upto 1.1 lakhs.would like to pay only Rs 50,000 p.a as IT.Can I set up a clinic & hire and pay employees or gift money to my parents? Ahome loan?Any other better options? What is the minimum required books of accounts to be maintained?Can I pay in cash to my workers?Please let me know in detail? I have contacted a CA but received no sataisfactory reply.

Answers:
You can claim expenses which you normally incurr for earning that income they can be anything from paying salaries o your employees, conveyance or travelling charges, petrol & fuel expenses, Telephone & Mobile expenses, Any rent that you are paying for the maintaining any office and any expenses incidental for maintaining such an office viz Repairs, Depreciation on equipment inclusing Computers, furniture, Air conditioners, vehicles etc.

You can definitely pay cash to your employees, you may however have to deduct Profession Tax from employees earning more than Rs 2000 p m if you are based in Maharashtra.buying your house

You can also get a deduction for interest on Housing Loan upto Rs 150000, if you have availed any loan for
on an annual income of 9.6 lakhs u want to pay upto 50,000 as tax. u are day dreaming. you have not received satisfactory reply from ur CA as u did not beleive him. Even with maximum saving of 1 lakh under section 80 c and 1,50,000 deduction towards housing loan interest ( if u have taken a housing loadn) you will end upo paying more than 1 lakh towards income tax. After all there is a limit. This is when all your income in in white, If your income is in black ( cash only ) then u can do what u want with it.
Pls pay your taxes. As consultant you can claim atmost 60% of your income as expenses (as salary, petrol rent, electricity, mobile etc) you have to pay tax as per tax rules on the rest.

If you get more than 10.0 lakhs as individual income - you are liable to audit, so be careful.

Please pay what your CA asks you to pay. It is better for you and for India in the long run.

regards

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