I have seen various replies but I would just like to confirm about my case as its my first time. I have been offered a consultant position and the company said there is no tax deducted at source. So this means tax is deducted at my end. I would be working in India for a Canadian company.
My question is,
- If the compensation that I receive is over 10 lakhs, how much would be deducted as tax.
I will also state what I have read and got to know. ie
a) Service tax 12.36% on the total compensation
b) First 2 lakh exempt
c) Next 3 lakh, 10% tax
d) Next 5 lakh, 20% tax
e) Rest, 30% tax f) Education cess i.e. 3% on the total tax ie a+c+d+e
- So are these the right taxes and % that Need to be paid? If not do let me know the correct deductions.
- Is the process of deductions mentioned above the same for any amount over 10 lakhs ? If not do let me know the correct tax brackets
- What others legal options I have to decrease the tax liability? As an employee of my ex company I had once taken an FD (that reduced my tax)
- Anything else I should keep in mind when signing a contract as a consultant, this will be a full time position.
Thanks in advance