Tds applicability on fees paid to investment consultant

685 views 5 replies

Raju

Executive

26 Points Joined November 2015

My Investment Consultant has given me an offer that he'll provide me good short term investment tips and whatever net profit (after deduction of Brokerage, Taxes, Short Term Capital Gain Tax) is earned at the end of the month from that investment, he'll charge 25% of the net profit earned as his fees / commission.

On this fees do i need to deduct any TDS (I don't have any TAN No.) and can i claim this fees / commission as expenses in my IT returns.

Currently I'm working as Freelance and provide my services in field of Payroll process to few clients.

Raju Patel

Replies (5)

Ruchi

1410 Points Joined March 2015

If the income is charged under 'business' head then Yes, you are supposed to deduct tds u/s 194J @ 10% if the amount exceeds 10% and you can also claim this expense. However, if it is charged under 'Capital gains ', then you need not deduct tds nor you can claim the expense.