Assessee is having a single business or profession
Parvati is a fashion designer and runs a boutique and has earning of Rs. 10,00,000 for FY 2024-2025. Further, to run the boutique, she has the following expenses:
Salary to staff: Rs. 2,00,000
Rent of boutique: Rs. 1,50,000
Travel expenses: Rs. 1,00,000
Repair and maintenance of machine: Rs. 1,50,000Â
The computation of Parvati’s income from business are as follows:
| Particulars | Amount |
|---|---|
| Gross Receipts | Rs. 10,00,000 |
| Less: Expenses | |
| Salary to staff | (Rs. 2,00,000) |
| Rent of boutique | (Rs. 1,50,000) |
| Travel expenses | (Rs. 1,00,000) |
| Repair & maintenance of machines | (Rs. 1,50,000) |
| Net Income | Rs. 4,00,000 |
Since, Parvati is having net income of less than Rs. 5,00,000 she will be eligible to claim a tax rebate. Hence, she will have no tax liability
Assessee is having Professional Income
Rajesh is a practising lawyer and has an earning of Rs. 30,00,000. His expenses for the same are Rs. 3,00,000.
The computation of Rajesh’s tax liability is as follows:
| Particulars | Amount |
|---|---|
| Gross Receipts | Rs. 30,00,000 |
| Expenses |
Rs. 15,00,000 (50% of income can be claimed as expenses) |
| Taxable income | Rs. 15,00,000 |
| Tax liability | Rs. 2,62,500 |
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