Consultanty income senior citizen

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vikas (Querist)
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20 September 2011 My father, a senior citizen, is providing technical consultancy services to a company and getting a remuneration against consultancy bill to a tune of Rs. 10.08 lacs p.a.

The company is deducting 10% as TDS on consultancy services.

I would like to get clarified as under :-
1. Does my father need to be registered for Service Tax also since he is total claiming > Rs. 10 Lacs
2. What expenses can he book apart from provisions of 80C
3. The company has provided him a car and pays for its fuel, but, the drivers salary is being paid by my father, how can he claim rebate from income
4. what expenses can he claim to deduct his total income from consultancy services
5. He runs his consultancy business from home, can he claim expenses of electricity, etc.
6. He needs to use excessive studies with technical books and journals which he frequently purchases, can he claim such an allowance
7. How will he file his Income Tax

Kindly respond

vikas

vikas (Querist)
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20 September 2011 September 2011
My father, a senior citizen, is providing technical consultancy services to a company and getting a remuneration against consultancy bill to a tune of Rs. 10.08 lacs p.a.

The company is deducting 10% as TDS on consultancy services.

I would like to get clarified as under :-
1. Does my father need to be registered for Service Tax also since he is total claiming > Rs. 10 Lacs
2. What expenses can he book apart from provisions of 80C
3. The company has provided him a car and pays for its fuel, but, the drivers salary is being paid by my father, how can he claim rebate from income
4. what expenses can he claim to deduct his total income from consultancy services
5. He runs his consultancy business from home, can he claim expenses of electricity, etc.
6. He needs to use excessive studies with technical books and journals which he frequently purchases, can he claim such an allowance
7. How will he file his Income Tax

vikas

vikas (Querist)
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Prof. Bajaj

Prof. Bajaj (Expert)
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22 September 2011 Please find your queries answered below:

1. Yes

2. He can show expenses such as office expenses, telephone bill, electric bill, books, internet charges etc used for the research work needed for consultancy. Also he can invest in infra bonds u/s 80CCF.

3. The drivers salary can be deducted from his business income under the head "salaries".

4. Answered in point no. 2 above.

5. Answered in point no. 2 above. Also, since he is not required get his books of accounts audited, you need not provide too many details on nature of expenses. Electricity etc can be part of miscellaneous expenses.

6. Yes. Answered in point no. 2 above.

7. He can file return online.

Hope this helps !!

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