Dear Seniors
I Plan to move on in my career as an independent consultant/analyst.
One of My prospective client however wishes to employ me as a contract employee, paying a fixed sum per month, for 1 year.
[Annually, it would exceed 5 Lakhs]
What % TDS would be deducted in such a scenario ?
I hear multiple answers such as 10.33%? 2% etc.
And, what would be my final tax liability %?
What kind of deductions can I claim, given that in the future scenario,
there is No PF, No HRA, No LTA, No Gratuity etc.
Is it beneficial to incorporate a company and let the client hire the services of the firm rather me as an individual?
Any advise is greatly appreciated.
ram
From India, Bangalore
I Plan to move on in my career as an independent consultant/analyst.
One of My prospective client however wishes to employ me as a contract employee, paying a fixed sum per month, for 1 year.
[Annually, it would exceed 5 Lakhs]
What % TDS would be deducted in such a scenario ?
I hear multiple answers such as 10.33%? 2% etc.
And, what would be my final tax liability %?
What kind of deductions can I claim, given that in the future scenario,
there is No PF, No HRA, No LTA, No Gratuity etc.
Is it beneficial to incorporate a company and let the client hire the services of the firm rather me as an individual?
Any advise is greatly appreciated.
ram
From India, Bangalore
Hi,
Joining a company as a consultant will provide you flexibilty in terms of time and responsibilties but it will deprive you of employment benefits like PF, gratuity etc and the most imp. part-Job security.
You can negotiate with your employer considering atleast the PF amount and ask them to provide Personal Accident Insurance coverage.
Any consultant fee above Rs 20,000 pa attract taxes @ 11.36 per cent.If u land up paying extra taxes., it could be claimed while filing IT return at the end of the financial year.
Do check the exit terms and conditions before signing the contract.
Regards,
Renu
From India, Delhi
Joining a company as a consultant will provide you flexibilty in terms of time and responsibilties but it will deprive you of employment benefits like PF, gratuity etc and the most imp. part-Job security.
You can negotiate with your employer considering atleast the PF amount and ask them to provide Personal Accident Insurance coverage.
Any consultant fee above Rs 20,000 pa attract taxes @ 11.36 per cent.If u land up paying extra taxes., it could be claimed while filing IT return at the end of the financial year.
Do check the exit terms and conditions before signing the contract.
Regards,
Renu
From India, Delhi
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TDS circular.pdf