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Kindly help with this confusion in return filing

Manjula Moorthy (Qualified CS CA Finalist) (209 Points)

11 July 2014

Dear Friends. Its one confusion im having while filing one return. The respective person received Consultancy charges and is employed under contractual Basis. The TDS deducted is U/s 194C @ 1%. While filing his return under what head should this consultancy charges be shown??? PGBP or Other Sources?Can he claim expenses under other sources??Or should his income be shown under PGBP????PLease Let me know what are your opinion in this case as per your point of view..Thank You in advance

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5 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 11 July 2014

income to be shown under head PGBP and expenses to be claimed accordingly...

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Mihir (Wealth Manager) (5293 Points)
Replied 12 July 2014

Yes, income from business/profession shall apply here.

Manjula Moorthy (Qualified CS CA Finalist) (209 Points)
Replied 12 July 2014

But the confusion is he is not imparting any professional Service.Upon that TDS is NOT deducted under 194J. His service is termed as Consultancy and he has a contract for 1-2 yrs..This is the reason im havin this confusion.

Sunny jorkar (Article Assistant) (101 Points)
Replied 12 July 2014

Ask his deductor to rectify the Mistake of deducting Tds U/s194C instead of 194J.

Or else,

File Return under the head PGBP and claim expense. Either show it Business and file return U/s 44AD or else show it as profession.. whicever benefits the Assessee..