Hi,
One of our employees resigned, and his salary was processed and transferred to his account until July 2014. From August 2014, he joined as a consultant outside India, let's say overseas. Currently, he is earning professional fees for his consultancy, and the money is being transferred to his Indian account. He will be completing his consultancy by December 2014 and will be back in India. I need to know whether the fees received as non-taxable will be taxed in India when filing the returns and under which section this will be taxed.
Regards,
Gopal
From India, Mumbai
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One of our employees resigned, and his salary was processed and transferred to his account until July 2014. From August 2014, he joined as a consultant outside India, let's say overseas. Currently, he is earning professional fees for his consultancy, and the money is being transferred to his Indian account. He will be completing his consultancy by December 2014 and will be back in India. I need to know whether the fees received as non-taxable will be taxed in India when filing the returns and under which section this will be taxed.
Regards,
Gopal
From India, Mumbai
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Dear Gopal,
Is your employee an Indian citizen or an expat? For Indian employees, if the amount payable exceeds Rs 30,000 in one financial year, then under section 194J of the IT Act, 10% TDS is deducted before paying the consulting charges. This rule applies to individual professionals only and not to companies. Your accounts department should be aware of this.
Thanks,
Dinesh Divekar
From India, Bangalore
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8218Is your employee an Indian citizen or an expat? For Indian employees, if the amount payable exceeds Rs 30,000 in one financial year, then under section 194J of the IT Act, 10% TDS is deducted before paying the consulting charges. This rule applies to individual professionals only and not to companies. Your accounts department should be aware of this.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Dinesh,
Thank you for your above suggestion. Please note that the employee I am referring to is an Indian citizen, and of course, his income exceeds 30000. However, please note that he has now earned consultancy fees as non-taxable for the consultation done overseas. My question is whether this income would be considered taxable in India when he files his current year IT return.
I kindly request your advice on the above matter.
Regards,
Gopal
From India, Mumbai
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Thank you for your above suggestion. Please note that the employee I am referring to is an Indian citizen, and of course, his income exceeds 30000. However, please note that he has now earned consultancy fees as non-taxable for the consultation done overseas. My question is whether this income would be considered taxable in India when he files his current year IT return.
I kindly request your advice on the above matter.
Regards,
Gopal
From India, Mumbai
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Dear Gopal,
In which books of account will you show the consulting charges? If it is an Indian company, then TDS should have been deducted while paying the consultancy charges itself. TDS deduction does not depend on the location or place of consulting.
Take my case. Suppose a training company hires me for a training assignment. However, this assignment is abroad. Nonetheless, while making payment, they will have to deduct the TDS.
Ok...
DVD
From India, Bangalore
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In which books of account will you show the consulting charges? If it is an Indian company, then TDS should have been deducted while paying the consultancy charges itself. TDS deduction does not depend on the location or place of consulting.
Take my case. Suppose a training company hires me for a training assignment. However, this assignment is abroad. Nonetheless, while making payment, they will have to deduct the TDS.
Ok...
DVD
From India, Bangalore
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