Income tax computation on contract income

Tax queries 552 views 1 replies

Hi,

I am retired employee of a private sector bank earning monthly pension. In addition to that I have worked for a few months post retirement on a contract basis with the same bank. The payment for such services rendered by me to the bank was made after a TDS deduction of 1% under section 194C. I am not clear on how I should compute income tax for the pension that I have earned and also the income from the contract services. Please clarify with references to appropriate sections/circulars. 

Replies (1)
Any payment made to employee, TDS is to deducted U/S 192 not 194C. If your service is treated as Consultancy, TDS should have been deducted U/S 194J. In your side, Pension is taxed under Salary & Consultancy service is taxed under business & Profession.


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