Difference between salaried and full time consultant

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akhilesh kumar (Querist)
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02 December 2014 sir/ madam

My query is , if retired person is working as a consultant , and he is getting Rs 50000+10000 in lieu of HRA .please advice tax treatment

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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02 December 2014 Consultant income is taxable under Income from profession/business. There should be Master-Servant relationship for tax-ability income under Salaries head.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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02 December 2014 These type consultants are basically an employee of organization. Generally these are allowed to be act professionals to reduce tax liability by claiming Expenditure etc., by eliminating PF liability, otherwise.

However, In all cases these consultants are treated as outsiders and assume to be have principle to principle relationship.

TDS is required to deducted as per provisions of section 194J

akhilesh kumar

akhilesh kumar (Querist)
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02 December 2014 Thanks sir for giving valuable answer

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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02 December 2014 You are always welcome

akhilesh kumar

akhilesh kumar (Querist)
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02 December 2014 Is TDS is applicable on HRA ? referring to above question

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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02 December 2014 Whatever amount given to consultant in any name are comes under the provision of TDS. for example it may be diwali bonus, Outstation allowance or HRA

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