ROSHAN PAUL JOSEPH (CA Final student) (311 Points)
06 June 2011mr. A, has been posted as Training Coordinator under GFATM project on a consolidated salary of 30,000/- p.m
the appointment under GFATM(Global Fund to Fight AIDS, Tuberculosis and Malaria) is on contract basis for a period of one year subject to continuation/termination based on performance.
under which head of income does it falls??
INCOME FROM SALARY
OR
PROFITS AND GAINS OF BUSINESS/PROFESSION
is there any exemption for this income??
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 06 June 2011
Aparna Raja K.C
(Student)
(520 Points)
Replied 07 June 2011
For Mr. A - it will be taxed under Income from Salaries and
For GFATM - It will be debited in P&L as Salaries and Wages... The profit of GFATM will be taxable under Profits and gains from Business or Profession:)
Ravindra kumar
(student)
(87 Points)
Replied 07 June 2011
Fellow u r earning which is taxable under head " INCOME FROM SALARY"
Kumar Babu.G
(Chartered Accountant)
(1597 Points)
Replied 07 June 2011
For A - If relation between A and GFATM is employee and employer relationship,then income will be charged under the head salaries
- If relation between A and GFATM is service provider and service receiver ,then income will charged under the head PGBP.
CA Mohit Saxena
(FINANCE MANAGER)
(343 Points)
Replied 07 June 2011
It is to be taxed under head Pgbp as he is employed by compny under contract not payroll and will deduct his tax under section 194J
SHASHI VARDHAN
(Pay Accts)
(99 Points)
Replied 07 June 2011
If relation between A and GFATM is employee and employer relationship,then income will be charged under the head salaries
- If relation between A and GFATM is service provider and service receiver ,then income will charged under the head PGBP.
CA Mohit Saxena
(FINANCE MANAGER)
(343 Points)
Replied 07 June 2011
Employer -employee relation is established when person is working under Payroll and he is entitled to pf esi benefits. In this company issues Form 16 to his employee and deduct his tax under section 192 only.
When he is working under a contract then he is providing Professional Services to company under a contract and company issues Form 16A and deduct TDS under section 194J.
There are many chartered accountant working on a contract and have taken COP (Certificate of Practice) and they are not employees of the company and providing services to company as a Professional.
In this way Mr. A's income is chargeable under head PGBP
Nikhil Gupta
(CA Final)
(99 Points)
Replied 08 June 2011
Friend wait for TDS certificate
If TDS is deducted u/s 192 then it is income from Salary
But if TDS deducted u/s 194 J or 194 C then you should take in income from Business & profession.
Please Correct me if i went wrong anywhere.
CAclubindia
