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Hi friends please advice - Professional fees

hussain (ca) (85 Points)

12 March 2013

Hii friends i have question i am getting professional fees which limit exceed Rs 30000 in a year n u knw tds applicable on it once it cross the limit,is any way i can avoid tds applicabality like any alternative i m not wrking as salary employee there nor i plan to join as salary employee any other alternative guys can u suggest i dnt want tds applicability...Thnx

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5 Replies

Lokesh (CS professional) (493 Points)
Replied 12 March 2013

Dear Hussain,

TDS is deducted by the employer himself while crediting ur a/c with the fees or else.

If he i.e the Employer does't deduct it then the liability to pay Tax shifts on Employer. So no chance of escaping from the liability to pay tax.

One illegal thing you can do is to take ur fees in cash and ur employer does't record it in his books or shows this fee as an expense.

paise bachane ke tarike bahut hain the only difference is legal and illegal.

I will suggest you to pay tax honestly.

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hussain (ca) (85 Points)
Replied 12 March 2013

hmm dear friend lokesh u didnt undstnd my questn i m not employee i m just working as visiting faculty so i get honararium n i want to knw legal ways like tax planning how to avoid tds by legal means ok frnd

gbalakrishnan (owner) (1373 Points)
Replied 12 March 2013

hussein saheb, when you teach, then your employer is trining department. when you are guest faculty you are a free lancer. so department will deduct your guest faculty fee if you take once in a year. better take whenever it touches below ten thousands and ask your director to pay you under conveyance expenses, after all, you have to travel to take classes is it not. show you are just honororily talking class, if you want to avoid tds after all you file your own return where you show what you want to show under what head! that way use your intellectal capital while helping yr tax officer with gifts!

anirban dev (....... :)) (151 Points)
Replied 12 March 2013

Take 29,000/- in Crossed Cheque and 1,000/- in cash ..... ask them not to show this 1,000/- in cash if they permit then on books you would be getting Rs.29,000/- as Professional Fees and it wont attract TDS ..... Thus your problem solved :)

But it depends if the payer agrees on this.

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 12 March 2013

take Rs. 28-30k as professioanl fee and take some amount as expenses re-imbursement like telephone expenses, conveyance or stationary expense re-imbursement...