Exemption in it for professional service

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Ashish Bhalara

Sr. Account Officer

172 Points Posted on 28 February 2014

Dear experts, My father is a senior citizen and doing a service of machine & tools designing as profession with income of 20000 p.m. fix on contract base. The TDS also deducted 2000 p.m. The other source of income is interest on FD & Saving account balance which may be 30000 in year approx.

Kindly know me that can he get benefit of all the exemptions which mention for salary income, please explain which exemption he can get to reduce tax and get refund TDS or provide any material or link regarding this.

Please also know me that which ITR should he filled for this
Thanks in advance.

Regards

Ashish

Replies (3)

Mihir

Wealth Manager

5358 Points Posted on 28 February 2014

It seems he is receiving professional fees and not salary as TDS at rate of 10% u/s 194J is deducted every month. He may file ITR-4. He may also claim expenses incurred by him in earning his professional fees.

Taxable income from fees (Rs. 240,000/-) and interest on FD (assuming Rs. 20,000/- pa) is about Rs. 260,000/-

Interest on saving account is deductible upto Rs. 10,000/- pa u/s 80TTA.

TDS deduction for fees is Rs. 24,000/- and FD is Rs. 2,000/- = total TDS Rs. 26,000/-

He is liable to pay tax only on 10,000/- that is Rs. 1,030/- whereas he is paying tax of Rs. 26,000/-, therefore he shall be entitle to receive a refund of not less than 24,000/-.

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