Income Tax

Hi all,

 

Can anyone tell me about conultants taxation system. I am working as an Consultant with IT Company, where TDS is deducted from my Consultancy Fees. and my Net annual income is Rs. 152,000. out of which Rs. 12,000.00 is income from consultation. & Rs. 140,000 is income from salary. Rs. 200 p.m. is deducted from my Consultation fees as a TDS.

Thank you.

Replies (2)

As apparent from the facts stated by you, your taxable income does not exceed the basic exemption limit considering that you are an individual (male). You may apply to the AO where you furnish your return for issuance of no tax deduction certificate in Form No. 13. This certi would be issued to the payer of income directly and he would be advised not to deduct tax at source.

hi Rahul,

TDS on Professional and consultation fees is to be deducted @ 10% if total payment during the year is 20,000/-. U/s 194J

In your case, it seems that your monthly income is Rs. 1000/- p.m i.e, 12000/- P.a  from Consultation fees , which is lower than threshold limit of Rs 20000/- .Therefore  TDS should not be deducted in your case.

Please note that in your case TDS is  deducted @ 20% but actual rate is 10%.

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