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Which ITR for a contract basis employee ?

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Kunal Tayal (Chartered Accountant) (43 Points)
Replied 24 July 2013

Originally posted by : Abhilash Krishnan P
@ swathi... thanks for the reply.. so it should be ITR 4 only right????

Abhilash please ensure whether Employer-Employee relationship exists or not. U can make a decision over the ITR to be filed only after that. And ya if the relationship exists file your return in ITR-1/2 and ask the employer to rectify the same.

1 Like

CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 24 July 2013

@ Kunal Thayal... Sir Thanks for the comment.. if the employer employee relation exists we can show it as salary income in ITR 1 and claim refund of tds as per form 16A right?? if its only a contract then it should be shown as Professional fee receipts in ITR 4 . Am i right sir?? Please provide your comments


Himani Jain (Article.) (34 Points)
Replied 24 July 2013

On this discussion ,few points shud be cleared.....

1.Whether a employer-employee relationship does exist..?

2.The exmpted income of assessee for the relevant year..?

 

lets take an eg..the Co. is Yashraj Ltd. and the assesse is Sharukh .

den if the Yashraj Ltd has contracted Sharukh for 2 years or on any terms n conditions....there exists a employer-empolyee relation....This is the basic criteria to determine the ITR.

It is evident that Yashraj had made a mistake by deducting tax u/s194J.....the CA shud ask the Co. to rectify the same..but it wont make any point to determine the ITR .

Secondly, if exempted income is more than Rs.5000 or if assesse has more than one house property...the ITR 2 shud be filled.

Else ITR 1 solves the purpose.


CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 24 July 2013

JUST ANALYSE FROM THE EMPLOYEE POINT OF VEIW...IF THE COMPANY IS WRONGLY DEDUCTING TAX AND PAYING IT UNDER WRONG HEAD THEN WHATS THE REMEDY FOR THE EMPLOYEE ??  SHOULD HE SHOW IT AS SALARY INCOME IN ITR 1 ??


Kunal Tayal (Chartered Accountant) (43 Points)
Replied 24 July 2013

See ultimately its your call...u want your employer to rectify the mistake or you can file ITR 4 instead. It doesnt make a difference anyways.

Although from next FY onwards do ensure regarding the nature of your engament with your employer.



SREEPAL REDDY GURRALA (EXECUTIVE) (38 Points)
Replied 24 July 2013

HI Abhilash, you can use ITR4 


CA Jainam Shah (Chartered Accountant) (190 Points)
Replied 24 July 2013

Originally posted by : Kunal Tayal


Thanx for guiding me kunal tayalsmiley


 


sachin raj (artilce) (21 Points)
Replied 25 July 2013

what if person is an employee on contract basis but  NO TDS HAS BEEN  DEDUCTED U/S 194j by the company, in that case which return is to be filed


Arun Kumar Jha (Accountant) (30 Points)
Replied 25 July 2013

Dear Swati Bhat,

Then Please tell me which ITR will be use for Professional fee recd.


CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 25 July 2013

@ sachin u can use ITR -4 only for professional services on contract basis if there's no employer employee relationship.....

@ arunkumar  ITR 4 only should be used for professional fee received

1 Like


Swapnil Salunkhe (Managing Partner) (46 Points)
Replied 25 July 2013

Hi,

If the service provider furnishing invoice for his service providing then TDS deduct should be 194 J (Filled ITR 4).

But company treated to this person like employee & deducting PF/ESIC then that it is the relationship of employer-employee- Then deducted under section 192 & fill - ITR 1.

Am I Right ??

Regards,

Swapnil


Supriyo Banerjee (Executive Finance) (181 Points)
Replied 28 July 2013

yes ...as i told earlier that might be he is an employee under a contract but he is rendering professional services ...so it is obvious to file return with ITR-4.


manoj (student) (5205 Points)
Replied 14 August 2013

IF PF IS DEDUCTED THAN IT WILL BE TREATED EMPLOYEE THAN ITR 1 WITH OTHER CONDITION AS EXEMPT INCOME SHOULD BE LESS THAN 5000

OTHERWISE ITR 4



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