One of our employee resigned and his salary was processed and transferred to his accoutn till Jul 2014 and from Aug 2014 he joined as a consulatant outside india say in overseas and now he is earning a professional fees for his consultancy and his money are transferred to his Indian account and he will be completing his consulatncy in this year by Dec 2014 and will be back to India Need to know whether teh Fees received as Non Taxable will be taxed in India while filling the returns and under which section this will be taxed.

From India, Mumbai
Dear Gopal,
Is your employee Indian citizen or expat? For Indian employees, if the amount payable exceeds Rs 30,000/- in one financial year then under section 194J of IT Act, 10% TDS is deducted before paying the consulting charges. This is for individual professional only and not for companies. In fact your accounts department would know this.
Dinesh Divekar

From India, Bangalore
Dear Dinesh,
Thanks for your above suggestion.
Please note the employee i am referring to is Indian Citizen and ofcource his income exceeds 30000 but please notenow he has earned a consultancy fees as Non taxable for the cosultation done in Overseas and my question is whether this income would be considered as taxable In India when he files his current year IT return.
Request you to please advice for the above.

From India, Mumbai
Dear Gopal,
In which books of account you will show the consulting charges? If it is 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 some training company hires me for the training assignment. However, this assignment is at abroad. But then while making payment, they will have to deduct the TDS.

From India, Bangalore

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