It payment

Save Share

This query is : Resolved

sur (Querist)
Follow

01 July 2012 For Fy 2011-12 Income Tax was assessed under the head Salary Income.Subsequently retired from service in Jan 2012(Slab rate 30%)). Joined as Consultant in March 2012 &received professional fees in April 12 although TDS was deducted & deposited in March 12 @ 10%.Under the circumstance please advise whether
1)I have to show the said income in the Fy 2011-12 & pay the balance amount as Tax @ of 30%
2)I can show the income of consultant in the F.Y 2012-13,since payment received in April 12(i.e on cash basis) and pay Tax @ of 10% thereby ignoring TDS in March12.
3) Alternative option so that Tax is reduced to bear minimum if i have to show in my IT return for the FY 2011-12 under the head Salary Income or under any other head since March.
I am a Cost Accountant & have have obtained CP since May 2012.
Regards
S.GANGULI

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

01 July 2012 You may follow cash basis of accounting for your professional Income.
.
You can show the professional income on receipt basis in FY 2012-13.
.
However, to get the credit of the TDS in FY 2011-12, you may show the professional income equal to the amount of TDS in FY 2011-12 itself as that part of income has already been received by you.
.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now