Consolidated pay tax treatment

Hi Dr. Amit.,

Non deduction of PF is just an indication and not a conclusive thing to decide whether you are getting salary or consultation fee.

I would say, confirm this thing from your Hospital only that whether they are treating you as an employee or a consultant.

Now ur other questions -

1) In case of a consultant, the receipts/income will be treated as Professional receipts.

2) Service tax is not applicable to Doctors in general, even if u r being treated as consultant.

3) Car's EMI -

If salary - then no deduction will be allowed in respect of car's EMI

if consultant - then interest will be allowed as deduction & depreciation @ 15%shall be claimed (due consideration should be given to dis allowance on account of personal use)

Hi,

Is that mean that I can recieve salary with PF too?

My understanding was that PF is always dedcuted from salary. 

Also , apart from interest my expenses on buying car will be considered as expense toward professional income. Am I right?

Regards and thanks a lot

Hello Dr.,

I meant that it is not necessary that PF is applicable on the Hospital. Further, in some cases the deduction can be optional.

So, just confirm it to be on safer side.

Dr. can you clarify what type of expenses?

If it is revenue in nature then Yes the same can be claimed under head Business/Profession otherwise you will have to capitalize them & claim as Depreciation.

HI,

Thanks a lot for quick reply. It is not hospital. It is dental college. Is PF law not applicable to dental colleges?

Also expense means money spent to earn professional income. Car will be used for commuting to college 65 km far.

oppps..sorry...:(

No, Its not that PF law is not applicable to Dental Colleges...I only meant that pls be sure so just  check it with your finance team.

And Yes, running (fuel, etc) maintenance expenses will be allowed as deduction.

Thanks a lot for clarification.