please help as soon as possible

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This query is : Resolved

Naresh Kansala (Querist)

20 March 2009 Respected professionals,

my frd is working in some co. as software engneer. but his co. show him as a private contractor instead of salaried employe. my frd does ful time work at their office (9.00am to 7.30pm)& not work for any other person & his salary does not contain any allowance.i.e. hra, ca, etc.;

is that income is salary or business income. if it is PGBP than can he claim petrol expenses from his income.

thanks in advance.

Regards,
Naresh Kansal
CA Student)

K V Subba Rao

K V Subba Rao (Expert)

20 March 2009 Income from Business. He can claim Petrol and also Depreciation.

Taranjit Singh

Taranjit Singh (Expert)

20 March 2009 Hello dear, For taxing income under the head salary, there must be the relation of Employer & Employee between the payer and payee. If the relation does not exist then the income would not be deemed to be income from salary. As business income is concerned, you can deduct the allowable expenses.

Naresh Kansala

Naresh Kansala (Querist)

20 March 2009 but he does not write books. than how he claim petrol exps.

Naresh Kansala

Naresh Kansala (Querist)

20 March 2009 but he does not write books. than how he claim petrol exps. he use bike for personal work too. then how he claim dep. & petrol exps.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)

20 March 2009 Now here its depend on Annual amount received. If he doesnt maintain books of accounts, and dont fall under the provision of 44AA, then he can claim the expenditure otherwise not.
Suggest your friend better to keep record of all the expenses in this particular case. Hope it clarifies

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