I retired on 31.08.2008 and was retained by my company on retainership (On contract) from 01.09.2009.
Previlages such as House rent allowance and conveyance and travel allowances were stopped from 01.09.2008.
Please advise, whether I would be eligible for exemption for such expenses during my contractual period 01.09.2008 to 31.03.2009.
From India, Ahmadabad
1Previlages such as House rent allowance and conveyance and travel allowances were stopped from 01.09.2008.
Please advise, whether I would be eligible for exemption for such expenses during my contractual period 01.09.2008 to 31.03.2009.
From India, Ahmadabad
Dear Sir,
When a person is taken on retainership basis, a lumpsum is paid (after deducted Tax at source) to him as "fees" without any break-up into various allowances.
You woul dnot get exemption for the various expenses under the head salaries for the period of retainership.
In this case you would need to prepare yoru balance sheet and the amount of profit would be taxable.
Hope this would help you.
Thanks & Regards,
Avika Kapoor
From India, New Delhi
When a person is taken on retainership basis, a lumpsum is paid (after deducted Tax at source) to him as "fees" without any break-up into various allowances.
You woul dnot get exemption for the various expenses under the head salaries for the period of retainership.
In this case you would need to prepare yoru balance sheet and the amount of profit would be taxable.
Hope this would help you.
Thanks & Regards,
Avika Kapoor
From India, New Delhi
Dear Avika Can I deduct expenses incurred in attaining the retainership: for example I have to stay in another city, other than city of origin. from the total income for computation of tax?
From India, Ahmadabad
From India, Ahmadabad
Your income from this retainership set up would actually be fall under the head "profits and gains from business and profession" undre the income tax provisions.
You would need to prepare a profit & loss account and a balance sheet and you can claim all the expenss as deduction that you incur for earning the income.
Hope this would help you.
Thanks & Regards,
Avika
From India, New Delhi
You would need to prepare a profit & loss account and a balance sheet and you can claim all the expenss as deduction that you incur for earning the income.
Hope this would help you.
Thanks & Regards,
Avika
From India, New Delhi
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Expenses Report Sheet.xls
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