Treatment of Professional Income

Hi,

I have a friend who has retired from his job in July 09. After that he got employed as a consultant with a singapore firm. He works from India. He gets paid by the firm. But the firm does not give any Form 16 or Form 16A.

In such case, can we treat his income as Income from Profession? Can he claim expenses which he incurs while working for this firm ?

Please advice.

Replies (9)

THERE IS NO EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN YOUR FRIEDN AND SINGAPORE FIRM.

 

HENCE IT WILL BE TREATED INCOME FROM BUSINESS OR PROFESSION.

Originally posted by : CA. BIJENDER KR. BANSAL


THERE IS NO EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN YOUR FRIEDN AND SINGAPORE FIRM.

 

HENCE IT WILL BE TREATED INCOME FROM BUSINESS OR PROFESSION.

I agree with him.

 

Here few points are important which are following:

1    Firm is cosidering him as a employee or consultant?

2   From where he is receiving income? If he is receiving income from outside India then he will not get Form 16 or 16A as TDS is applicable within India only.

3   If he receiving income from outside India then DTAA and that countries tax law need to be checked.

He is receiving income from outside India (Singapore).

But he is not paying any taxes in Singapore. Will DTAA matter in this case?

First of all his income will be taxable in India as his residential status will be Resident and ordinary resident. It may be possible that any tax may be imposed on his income in Singapore. I did not study taxation policies of Singapore till now so i shall not be able to comment on it right now. I will try to read it today and may be try to comment on it tomorrow.

 

For Indian income it will be better if he receives this income as consultant because in such a case he can take the benefit of expenses which were incurred by him during the consultancy service.

 

If possible please mention the amount he received from that firm so that i can provide you more laws which may be applicable. 

He received in all around Rs. 2 Lakh in AY2010-11.

In this case it will be better to show his income as consultancy services. Please provide me one more information did he receive amount in India or in Singapore??

He received in India in Rupees in his SBI account.

If he had received in India then there will be no problem. DTAA and international taxation will not be applicable.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details