Tds on part time income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 Dear Experts,

I am a trainee in an organization where I am getting 5000 as Stipend, I have been invited to take up guest lectures for students in a management institute which generates me a monthly income of 12,000 Rs.

TDS is not applicable on 5000 Rs (Stipend) but the Management institute is asking for TDS on 12,000 Rs. Since my gross total income is then the permissible Tax Limit, I think TDS should not be imposed on 12,000 Rs.

Is there a way out to the problem stated above? Please help me.

Regards,

Vishnu Saboo

Vishnu Saboo (Expert)
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01 August 2014 on what account they asking for deduction, when income is not crossing its exemption limit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2014 If they consider your payment as salary no TDS else TDS will arise.

Vishnu Saboo

Vishnu Saboo (Expert)
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01 August 2014 yes, agreed with Mr Seetharaman

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 Dear Seetharaman Sir,

Amount received in lieu of guest lectures might not be considered as Salary.

If the same shall be considered as remuneration for professional service, then still the amount would be far less then the specified Tax Bracket.

Kindly suggest a way out to the same..

Thanks in aticipation.

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2014 This can be treated as honorarium and treated at par with salary. Payment of salary to part time lecturers and guest lecturers is prevalent. If it is treated as remuneration for professional service TDS is applicable for any payment exceeding Rs.30,000 in a year. your service cannot be considered as professional service in view of the following:-

Professional Services means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of Section 44AA.

Other professions notified by the board for the purposes of Section 44AA are – “profession of authorised representative”, “profession of film artist” and “profession of company secretary”

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Vishnu Saboo

Vishnu Saboo (Expert)
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01 August 2014 if they treating you as professional, they deducting tax u/s 194 J. limit of said section is 30000/-.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2014 Thanks to Seetharaman Sir and Vishnu Saboo Sir for your piece of wit, I am obliged.

Seniors like you, in true sense are enlightening and mentoring the freshers through this forum, it is appreciable.

Many Thanks! :)