Individual consultancy tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2013 Dear Sir/Mam,

My Friend is Working as a Consultancy in Private Organisation he get Rs. 250000/- per Annam, what will be Tax Payable my Friend and any return should be filed,Please Clarify it.

Thanks,

Regards,
Venkat

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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15 April 2013 He comes under professional catogery and his net income from professional shall taxable under the income from business/professional so he has to file ITR-4 as well as he can claim expenditure if any met for acquiring of such income as deduction. I.e for example for his consultancy he paying telephone expenses of Rs. 5000 p.a from his own pocket then he can claim this deduction of Rs.5000 from Rs.250000 and then his net income from profession is Rs. 2,45,000 thus like if any other expenses which are incurred for the purpose of his profession then such are eligible for deduction. And after deduction of all eligible expenditures and Chapter VIA deductions his total income is excess of Rs. 200000 then he is liable to pay tax for A.Y 2013-14 @10% + 3% cess.

If the company has deducted any TDS from such fees paid above then he shall adjusted his tax liability if any from such TDS deducted amount and balance amount if any shall claim for Refund.

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