Salary & Professional Fees at a time from same company

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This discussion explores whether an individual can receive both a monthly salary and monthly consultancy fees from the same organisation for services rendered. While theoretically possible, especially if the consultancy is outside of regular employment hours, the consensus leans towards such payments being aggregated as salary under UK tax law. There's a lack of specific case law to definitively support receiving separate professional fees from the same employer, with suggestions that it might be considered overtime rather than genuine consultancy.

Somnath

Somnath (Querist)

25 December 2024 Dear All
Is there any rule in income tax or labour law that a person can't get monthly salary & monthly consultancy fees from same organization at a time for service rendered ?

TDS on consultance fees will be deducted as per section 194J of Income Act
TDS on Salary will be deducted as per section 192 of Income Act

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 December 2024 A salaried person can get incentives along with salary, and he can get professional fees as and when he is not an employee.

Somnath

Somnath (Querist)

25 December 2024 Yes , that is theoretical
Is there any act or statutory rules related to this guideline (Any reference) ?
A person can work as a salaried person as per his employment rule but after his office hrs he can give his technical support / guidance against professional fees to the same company as a professional.
In both cases , TDS can be deducted under different sections of income tax to avoid any violation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 December 2024 There is only one rule for salaried person that whatever payment + perks + incentives+ wages etc, by whatever name it be called is aggregated to SALARY. After working hours even if he works for the same company it will be termed as overtime, but not professional consultation. It can differ if the organization is different, but not for same organization. No case law supporting your terminology.

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