Personal secretary / personal assisstant

Chandresh Sanat Jatania (Chartered Accountants) (116 Points)

21 June 2012  

Hi,

The assessee wants to hire a person as a personal secretary / PA for his work. Money would be paid by the assessee personally. I would like to know the tax implications of such apponitment. Few specific queries are

  1. Which provisions of the Profession / Income Tax Act will apply to this case?
  2. Does the assess have to get registed with the Profession Tax authorities?
  3. Will the assessee have to deduct Income Tax and issue a Form 16 to such assisstant
  4. What will be the implications if the amount is paid by the assessee from his own capital and not claimed as expenditure.
  5. What wil be the tax implications of the above payments / expenses if the assessee does not have any direct business income

I would also appreciate, if you could provide me with any specific notification / circulars / case law related to the above.

Please feel free to highlight any other major points related to the above case which I might have missed out.

Thanks in Advance.