Taxablility of reimbursements in professional services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2016 sir, I am a small professional getting reimbursements from client for exp on communication, travelling, local conveyance, expenses on govt and other related offices. total 14K*12=1,68,000. In additon receive 20k*12=2,40,000 as professional charges.
TDS shall be deducted on which amount-2,40,000 or 2.4+1.68 lacs ?

Is my taxable income is 9% of 2.4 Lacs for assessment year 2017-18 without maintaining accounts?

Is reimbursement of exp made for this client is part of gross total income ? It is not received in one lumsum as answered earllier.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2016 1 TDS applicable on 2.4+1.68 lacs. In view of reimbursement is paid in lump sum.
2 The taxable income is 50% of 2.4+1.68 lacs for AY 2017-18.
3 Yes it will be part of gross total income.

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