being consultant or salary employee for tax saving
Querist : Anonymous
Which one better for me as being consultant or salary hoder for tax saving please clarify in details urgently
Querist : Anonymous
So it will be beneficial if you show professional receipts and then show some expenses and get deduction for the same.
However if you do that then firstly you will have to apply for service tax registration as the gross receipts will exceed Rs. 10,00,000. So the company paying you cost will increase if the company is not taking cenvat credit.
However since your professional receipt will cross Rs. 10 lakhs you will be liable for tax audit u/s 44AB of the Income Tax Act.
Also it will be compulsory for you to maintain books of account as per section 44AA.
So tax savings will be huge in consultant than in salary but there will also be a cost for it which would be less than the tax savings.
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