You have to show your professional income under presumptive income under head income from business and profession, apart from salary income
Tax returns filing for additional source of income
I work in a corporate where I regularly earn my salary. I fall into 30% salary bracket. Every year I used to file tax returns based on Form 16, company used to give me at the year-end. This financial year on I started having one more source of income. I work as a consultant for another company as well, where they pay me a consultant fee. They are doing TDS of 10% for the consultancy fee to me according to the provision of 194j. My questions are, is this right way to tax my income? Secondly, how do I file returns for the consultancy fee I'm getting apart from salary?
Asked 6 years ago in Income Tax
Hi,
1. Yes it's correct.
2. You will have to show this consultancy income in your ITR and pay tax as per your slab rate. You may choose presumptive taxation if your qualify for that. You will have to file ITR 3 or 4.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
If I file the returns under presumptive taxation, is TDS paid of 10% applicable or the salary slab rate (which is 30%) is applicable?
Asked 6 years ago
What is the nature of consultancy and amount from it. There is no problem, you can show both the income i.e. salary and professional income. What is the mode of consultancy?.
If possible plz call me on 7060029944 for more clarity.
The 50% of your professional income will be taxed at 30%.
If you want I can assist you in return filling
Dear Sir,
As you fall into the 30% bracket therefore professional income will also fall into the same bracket and you need to pay additional 20% as tax.
ITR-3 or ITR-4 can be used depending on the response of previous reply.
the tax rate will be your slab rate i.e. 30%.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hii
if your are eligible professional u/s 44 ADA only then you can opt for presumptive Taxation method and in this method you have to pay tax out of pocket.
e.g.
your consultancy income if Rs. 100000
profit u/s 44ADA 50000
tax on the same 30.9% 15450
TDS deducted 10% on 1 Lakh 10000
tax to be paid 5450
Hi,
Please find below the answers to your queries:
1. Yes
2. Consultancy fees to be added to total income and taxed at the slb rate in which you fall.
Regards,
Nikhil.
Your income will be charged as per your slab rate. You can opt for presumptive taxation .
Itr 4 can be fillied in that case.
Hi,
The rate of taxation does not change. It will remain same as applicable on salary. Only the way and the amount of income changes.
Thanks
Damini
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