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How do you calculate a sole proprietorship, self employment income tax. In addition the same tax...

How do you calculate a sole proprietorship, self employment income tax. In addition the same tax payer has wages as an employee from a school? Thank you.

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Answer #1

Income from sole proprietorship taxable under the head of income from business and profession and wages received from the school under the head income from salaries.following are steps :

Computation of taxable income of Mr:X

Particulars

Amount (Rs)

Amount (Rs)

I Income from salaries

Salaries income

xxxxxxx

Less :deduction U/S 16

xxxxxxx

Taxable salary

xxxxxx

II income from business and profession

xxxxxx

Gross total income

xxxxxxx

Deduction U/S 80 c to 80 U

xxxxxx

Taxable income

xxxxxxx

Tax liability

XXXX

Notes :In the case of business loss, the loss canot be set off against salary income

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