What is retainership payment

Tax planning 6293 views 2 replies

Seshagirirao Chepuri

1 Points Joined June 2017

Dear all ,

I have joined a Firm for Marketing and administration .They have kept me on Retainership and offered me a payment of 52000 as retainership.Last month I have received 52000 retainership as 'claim' with a deduction of 5200 as TDS and another 1800 towards EPF contribution.I dont have any kind of savings for Tax savings and no other source of income also.

Now what I have to do avoid TDS at sorce and also what expenses I can claim to Income tax refund as I donot have Tax saving like house loan LIC etc.I stay in rented house paying 10,000 rent.

Can I get help please?

Thank you

Shashi Kumar

Replies (2)

Naman Jain

2 Points Joined June 2017

Retainership Fees is not covered under the provsions of Salary head and taxable as professional or contractual payment as per mutual agreement with such company. On seeing your TDS amount it seems that they have deducted TDS u/s 194J which means it is for Professional Services. Since you do not have any other income, your income is below the basic exemption limit and hence you can claim whole of such TDS as refund by filing the income tax return.