I am employed as a senior retainer on a fixed salary by my organization. On retirement, I worked there for 27 years. What are my tax liabilities, and will I need to pay GST too? Will TDS apply to me, and at what rate?
From India, New Delhi
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From India, New Delhi
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Hi,
I hope you are just contributing to your employer as a retainer.
If so, your employer will pay you the retainer fee after adjusting the TDS only. If the total earnings for the financial year are less than the taxable income, then you can claim a refund while filing annual IT returns.
With regard to GST, I think if your total earnings for the year are more than twenty lakhs, then you should apply for a GST number. While raising monthly invoices with the employer, you need to add 18% GST along with your monthly retainer fee and should remit the same to the government. This part, I'm not very sure about. You should verify with your auditor.
From India, Madras
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1015I hope you are just contributing to your employer as a retainer.
If so, your employer will pay you the retainer fee after adjusting the TDS only. If the total earnings for the financial year are less than the taxable income, then you can claim a refund while filing annual IT returns.
With regard to GST, I think if your total earnings for the year are more than twenty lakhs, then you should apply for a GST number. While raising monthly invoices with the employer, you need to add 18% GST along with your monthly retainer fee and should remit the same to the government. This part, I'm not very sure about. You should verify with your auditor.
From India, Madras
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Hi Sharmala Kapur,
It's important to consult with a tax professional or accountant who is familiar with the specific tax laws in your jurisdiction.
Income Tax:
Retirement Benefits:
Depending on tax laws, retirement benefits such as pensions, gratuities, and other retirement benefits may be taxable. The rate at which these are taxed can vary.
Salary Income: If you receive a salary after retirement, it will be taxed as regular income. The tax rate will depend on the income tax slabs applicable.
TDS (Tax Deducted at Source):
TDS is applicable on various payments, including salary. However, in your case, since you're on a fixed salary and not a consultant or freelancer, the TDS would have been applied as per tax regulations during your employment. After retirement, if you continue to receive a salary, TDS would continue to apply at the same rate as before, unless there are specific provisions for retirees.
GST (Goods and Services Tax):
GST is generally not applicable to salaries or retirement benefits. It is a consumption tax applied to the sale of goods and services.
It's crucial to consult a tax professional or accountant who is well-versed in the tax laws of your specific jurisdiction, as well as any specific provisions that may apply to retirees. They will be able to provide you with personalized advice based on your situation.
Keep thorough records of all your income, including retirement benefits and any other earnings. This will help ensure that you accurately report your income and pay the appropriate taxes.
Thanks.
From India, Bangalore
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It's important to consult with a tax professional or accountant who is familiar with the specific tax laws in your jurisdiction.
Income Tax:
Retirement Benefits:
Depending on tax laws, retirement benefits such as pensions, gratuities, and other retirement benefits may be taxable. The rate at which these are taxed can vary.
Salary Income: If you receive a salary after retirement, it will be taxed as regular income. The tax rate will depend on the income tax slabs applicable.
TDS (Tax Deducted at Source):
TDS is applicable on various payments, including salary. However, in your case, since you're on a fixed salary and not a consultant or freelancer, the TDS would have been applied as per tax regulations during your employment. After retirement, if you continue to receive a salary, TDS would continue to apply at the same rate as before, unless there are specific provisions for retirees.
GST (Goods and Services Tax):
GST is generally not applicable to salaries or retirement benefits. It is a consumption tax applied to the sale of goods and services.
It's crucial to consult a tax professional or accountant who is well-versed in the tax laws of your specific jurisdiction, as well as any specific provisions that may apply to retirees. They will be able to provide you with personalized advice based on your situation.
Keep thorough records of all your income, including retirement benefits and any other earnings. This will help ensure that you accurately report your income and pay the appropriate taxes.
Thanks.
From India, Bangalore
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf