TDS

TDS is generally liable for expenses incurred in business. Hence if TAN is taken in proprietorship firms name it will suffice.

I,S.Krishna Murty,Professional Accountant.I am giving my services to my claints on monthly basis. My claints are showing my remunaration as salary in their books of account. So they are not deducting TDS on my remuration, because it is below taxable limit.(i.e Rs.1,60,000.).But in my books of accounts I am showing my income as professional charges received. If the professional charges received morethan Rs.20,000 TDS should be attracted.Kindly clarify Is there any problem in respect of my claint for non deduction of TDS and showing my remunaration as salary.

I think its wrong classification by your clients. They are giving you professional charges and not salary income.
I dont think that there is employer-employee relationship in u r case.
SO u r clients have to deduct TDS on payments above Rs. 20,000.

TDS is generally liable for expenses incurred in business. Hence if TAN is taken in proprietorship firms name it will suffice. I think its wrong classification by your clients. They are giving you professional charges and not salary income.I dont think that there is employer-employee relationship in u r case.SO u r clients have to deduct TDS on payments above Rs. 20,000.

With reference to my earlier question my claint had given the following clarification.My claint had given appointment letter as salaries employee and every day I am going to my claints office and giving my services as part time employee. with reference to definition of salary any part time payment is also taxable as salary. My claint is also giving form 16 for payment of my remunaration.Now on what basis TDS should be attracted.Kindly clarify.

Then TDS has to be calculated as per sec.192 of the IT act,  because you had got appointment letter as salaried employee. Incase of professional charges or services rendered, there will be an agreement or contract should be there between payer and payee.

So, your income has to be treated under salary, eventhough you are a part time employee and rendering professional services.

in reference to pavan's question

In properitery business both PAN & TAN are in the name of the properietor

But arpna, what do you say about the reply of aditya maheshwari.

You can take in anyone's name but normally it is taken in the name of properietor so that he can use it in more then one business, but if he want to take TAN in the name of the firm he can. Its up to him only.

TDS has to be calculated as per sec.192 of the IT act,  because you had got appointment letter as salaried employee. Incase of professional charges or services rendered, there will be an agreement or contract should be there between payer and payee.So, your income has to be treated under salary, eventhough you are a part time employee and rendering professional services.

  MR. KRISHNA MURTY,

YOUR CLIENTS ARE DOING RIGHT CLASSIFICATION BUT YOU ALSO HAVE TO SHOW IT UNDER SALARY INCOME WHILE FILING YOUR ITR.

THEN IT WILL BE CORRETC ON BOTH ENDS.

REGARDS,

RITESH KOTHARI

agree with Mr. Krishna Murty