Salary from contract based employment - Section 44ADA

Hello,

Your pension income would be taxed under income from salary head only.

Your salary income from Harnil Techno Consultants would also be taxed under Salary Head if TDS is deducted under Sec. 192, else it might be taxed under Business/Profession Head if TDS is deducted under Sec. 194J.

Mostly it would be taxed under Salary head. Need to look at your Form 16/16A to give you an exact answer.

For return filing please contact directly at our mail [deleted] or take a phone consultation for a better resolution.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi, 

Hope you're doing well. 

1. Your pension income from the govt will be taxable under income from the head salary.

2. Your salary income received from Harnil Techno Consultants will be considered under "Income under the head salary" if your TDS is deducted under section 192. Your income received will be considered as "Income from Profession" if your TDS is deducted under section 194J.  Based on your information provided, im confident on your income being treated as your salary. For confirmation, Form 16 can be taken from your employer and verify the same.

You can call me or email me at [deleted] for further assistance to file the ITR and to look into what's more beneficial to you to save taxes. 

Thanks!

More beneficial would obviously be showing it under 44ADA but since EPF and ESI are deposited you need to show it as salary income.

Sure sir you can contact me to file your ITR

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Thanks for your awesome rating it was my honest opinion and since EPF is getting deducted by the employer you need to show it as salary income.

Hi,

Most likely that your employer has not filed the TDS return or incorrect furnishing of PAN number. Please check with your employer for either of these reasons. 

Hi

Since the employer is contributing towards ESI n EPF, you are treated as an employee only. Thus, the income needs to be reported as salary. You cannot opt for presumptive taxation. Also, you cannot show such income under any other head.

Ask for FORM 16 from the employee and file ITR accordingly.

Dear Sir,

Hope you are doing well !!

It would be treated as salary income only because of the following reasons:

1. You are getting salary slip.

2. Employer is making contribution towards EPF & ESI.

So, you can not take the benefit of presumptive taxation scheme.

As per the Income Tax Act, every employer, at the time of paying salaries, is required to deduct Tax (or TDS – Tax deducted at source), which is computed on the basis of the income tax slab rates in force for that financial year. Companies usually calculate the tax payable by the employee, on the basis of the forecasted earnings and investment declarations made by the employee at the beginning or during the course of the year.

The TDS, so deducted, by the organization or employer is deposited with the Income Tax department and the Form 16 in turn is a proof of the same. Employers need to issue the Form 16 to their employees on or before 31st May of the financial year immediately following the financial year in which the income was paid and tax deducted.

You need to ask the FORM 16 from the employer.

Accordingly, you need to prepare and file your income tax return.

Since PF and ESI contributions have been made and you also receive salary slips, your income from Harnil Techno Consultants would be considered as Salary Income.

Hi,

- As EPF, ESI and professional tax is deducted and contributed by the contractor therefore you will be treated as salaried person and not professional. You can not take the benefit of 44ADA and required to show it as a salary income along with the pension.

- You can contact me at aroravivek1982@gmail

Thanks

Hi

It should be declared as Salary Income only.

We can assist you in Return Filling.