07 April 2012
Dear senior Professional friends one of my client has retired from govt job and now working with consultant for some other company for that he is receiving fee with deduction of tds is it any problem for his pension from gvt? Please clarify it.
09 April 2012
I hope,your question is whether he can work as a consultant though he receives consultantancy fee from some other firm.The answer is ,Yes,there is nos restriction on working after retirement (getting pension) and getting fess of the work done unless he has restrictions from Govt for not working with competing industry..........This kind of restriction is there for senior employees of Govt (not to work for 2-3 years after retirement...).So far taxation is concerned,he has to be taxed for pension received under the head Salary and for the consultancy fee received under the head Income from Profession.The non deduction of tax at source from the fees paid to him is not an issue for the receiver.
CAclubindia
