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Imcome as salary or Professional fee

28 December 2019

Dear Sir/Mam

I'm an accountant in 5 firm & I get payment cheque each of them separately on monthly basis .

Is my income is considered as salary or professional fee ?

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12 Replies

Kapadia Pravin (17259 Points)
Replied 28 December 2019

How are they considering payment ? As salary or as professional fee ? (Retainership fee)

Depending upon payers classification, you have to show it accordingly

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Arav Rawal (38 Points)
Replied 28 December 2019

If they show as salary then Can I show my income as salary because I receive it from five employer's

Kapadia Pravin (17259 Points)
Replied 28 December 2019

Get salary certificate from all five employers

There is no ceiling on No. if Employers.

But Standard deduction maximum will be total 50000/- only (and not employer wise)

Arav Rawal (38 Points)
Replied 28 December 2019

Thank you for your advice.

If they show my income as their professional fee and deduct TDS on my income u/s 94J then It is valid or not ?

Kapadia Pravin (17259 Points)
Replied 28 December 2019

If TDS under 194J is there then you must show income as Professional Income only.

You make take benefit by opting for 44ADA presumptive taxation .

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veeresh hiremath (10 Points)
Replied 28 December 2019

This is in the form professional fee not as salary since there is employment relationship between you and their firm

Alok Singh (209 Points)
Replied 30 December 2019

Employer employee relationship is must, for salary

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 30 December 2019

Check if there is any T.D.S Deduction in form 26AS. Most probably you must get covered under Salaried Employee.

For Professional fees , your profession must get covered under Professions notified U/s 194 J in this regard.

sabyasachi mukherjee (27334 Points)
Replied 30 December 2019

@ rawal
there are 3 options.
1. are they deducting tds and giving u tds certificate.
2. if yes get hold of the tds certificate.
3. at what rate.

Arav Rawal (38 Points)
Replied 30 December 2019

Sir,
One firm Deduct TDS u/s 94J on my incom and remaining four firms do not so.

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Kapadia Pravin (17259 Points)
Replied 30 December 2019

So it's better for you. No TDS deduction. TDS deduction is player's responsibility.

At the year end you check what type of payment certificate they are giving and then show accordingly in ITR.

Whatever TDS is there as per 26AS that you claim in ITR.