Hello, I did some freelance work for a company. The company deducted 10% TDS for the services and remitted the rest of the payment. The company is now submitting their monthly service tax returns. For this they are suggesting that I submit my father's PAN number instead of mine for the TDS receipt/statement. They say that since my father is retired now, I can show the income in his name which will fall below the taxable income ceiling and hence can claim TDS refund when I file for the returns through him. Is this a legal and ethical way to claim tax refund?
Thank you for the clarification, Abhishek! My follow-up question is another situation. One of the person in their management team of same company provided another project for which I was to provide software proof of concept and framework. I provided the cost estimate for entire project and started work. By the time I finished the proof of concept, the company decided to put off the project for a later date. I submitted the bill for the work done till then. The person then said that he didn't have approval from the management team for the work done. But to negate my losses he offered to pay from his pocket instead of from the company account. Could you please let me know the tax implications of this transaction? How do I show this income to pay tax as I would not get a TDS statement? What is the right way forward?
Did he deduct TDS from the payment?
Hello Abhishek, Thanks for replying. No, he has not deducted TDS. a) If I pay him the TDS amount and then show it in my income, will I have to pay TDS again while filing returns? What proof will I need to show during filing? b) If I show the income directly when filing returns, can I pay the TDS that time?
I think the coversation is already on with our other colleague. Thus will not answer the query and in case of more doubts you can mail at firstname.lastname@example.org
Hello SIr, You can claim the TDS deducted on your income and in the second case where a person is paying you your fees, you can offer the whole part as income and pay the due taxes while filing your return. Trust this clarifies your query. Feel free to call back/ get back in case of further clarifications. Thanking You. Regards, Rohit R Sharma BCOM, ACA, LLB-GEN, CERT. FAFP.