I am an Engineer (Designation given is Project Engineer) and has been employed on contract basis receiving "Consolidated Remunerations" which have two parts: Fixed Basic and 50% of Central Govt DA. I do not get any other allowance (i.e HRA, Tpt Allowance etc) or any other perks (like LTC etc).
But my company in Form - 16 shows "Salary as per provisions contained in Section 17(1)" and deducts taxes as per rules applicable to Salaried permanent employees. To reduce Tax Liability i avail tax exemption on the interest and principle elements of housing loan. I also deposit around 1.5L in PPF ac to avail tax exemption.
Keeping in mind that i am a contract employee with only "Consolidated Remuneration" kindly advise on the below.
(1) Is my company right in doing TDS in my case like anyother permanent employee (who gets all allowances and perks) ?
(2) Can i fill ITR-4 instead of ITR-1 or 2 ?
(3) If i need to file ITR-4 then in
(a) What should be by business code ? 607 or 703 ?
(b) Will it come under 44 AD or 44 ADA ?
Kindly advice
CAclubindia
