Salary incoem and remuneration
Querist : Anonymous
Here is my query is regarding Salary and Remuneration.
I am getting Salary from one concern and
Remuneration from sister concern and the
TDS is deducted under Section Code 94J.
Should my this Remuneration income treated
income from Business and Profession?
If yes, then should it is necessary to prepare Profit and Loss A/c?
If No, then how this income treated in my
Income Tax Return.
Please rewart as soon as possible.
CONSULTNCY
OR SPECIFIED PROFESSION U/S 44AA OF INCOME TAX THEN YOU HAVE TO PREPARE P/L A/C
Querist : Anonymous
you are not understand my query, my query is
simple i have not specialization in any profession, i am just doing job and getting reward as salary from one organization and Remuneration from sister concern to compensate me (TDS is deducted under section 94J) now please tell me should i prepare Profit and Loss account for remuneration income and claim deduction of expenditures.
Salary income from one concern is clearly taxable under the head “Income from Salaries”.
The “Remuneration” paid by the sister concern, where TDS is deducted under Section 94J, indicates it is treated as fees for technical services or professional fees (business income), not salary.
Since you do not have a professional qualification and you are getting remuneration as compensation (not salary), this income is treated as “Income from Business or Profession”.
Hence, yes, you should maintain books of accounts (like Profit & Loss account) for this remuneration income and can claim related expenses (if any) against it.
On your ITR, report:
Salary under “Income from Salaries”
Remuneration under “Profits and Gains from Business or Profession”
If expenses are minimal or you want simplicity, you could also consider the presumptive taxation scheme under Section 44ADA (if applicable) for professional income (upto ₹50 lakh turnover), which requires less accounting.
Click here to login now
Similar Resolved Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- Regarding appeal to GSTAT
- Multiple trade mark
- Regarding TDS Applicability For Director Remuneration
- Transporter Declaration form
- Copyright software
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
