Tax

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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 If somebody knows.please help. My query is:
What is the tax effects for Consultants? One of my friend is going to work for a company as a consultant. She don't have to go to any place of work, she just has to work from home through internet and the company also dont have any physical office in india. Her salary is fixed but will be paid in Dollars on monthly basis. The company is is not going to deduct any tax on such salaried income. I never heard about such kind of thing. she is saying tax treatment for consultants is different from other individual..pls help.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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30 May 2012 the tax treatment will not be different, and she will be liable to pay income tax on such income as per regular provisions of income tax

there are no separate rules for the consultants

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 @Harish- thanks for the reply :) I had discussion with my friend n we think tax treatment will be different.Her income is not salaried income b'cs of no employer-employee relationship( read the question carefully). Her income is taxable u/h PGBP and she will have to maintain proper books of accounts n rest u know. but thanks for replying ...tc :)

CA Harish Suwalka

CA Harish Suwalka (Expert)
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01 June 2012 i quote a line from your question " the company is not going to deduct any tax on such salaried income"

.. thats why it has been assumed that employer-employee relationship exists which is a pre-requisite for salary..

you have to determine the character of income, whether is it assignment based or salary based..
the answer is still valid that there is no different treatment for consultants...

he will be taxed as PGBP is not owing to his designation as consultant but owing to the nature of agreement with the employer..

CA Harish Suwalka

CA Harish Suwalka (Expert)
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01 June 2012 for example professionals appointed on retainer-ship basis are not termed as employees and TDS is deducted u/s194j instead of 192

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