Referral fee received in addition to salary

Hi 

 

One of my CA friend who is an employee of non-CA firm engaging in Debt syndication is due to receive 8.90lakhs referral fee for introducing a client to his firm.

 

Query:

  1. Is charging under salaries head compulsary as there is already an employer/emplyoee relationship with that same firm?
  2. If not, can he claim certain expenses to reduce tax liability from 8.90L fees received?

 

 

 

Replies (1)

Hi 

Since the relationship of employer-employee exists, this transaction is to be compulsorily shown under the head Salary.

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