TAX ON ON-CALL PAID SALARY

[Guest]

Hello everyone ,

I am a doctor currently preparing for PG entrances while doing on call duties at hospitals near hyderabad. so, I am paid for duty on call on daily basis or at the end of my duty. I do around 10 - 15 duties per month and while I take the payment the administration deducts 10% of the amount saying that it is for Income Tax purposes and they also take my PAN card number.

Now my doubts are,

1) is this practice correct

2)if it is correct should I collect any proof or form stating that I have paid Income Tax so that i can apply for returns. 3)can anyone please provide me with the relevant form names for the above situation.

thank you!!

[DR.MARIAPPAN GOVINDARAJAN]

The practice adopted by the Hospital in deducting tax at source on your professional income received from the hospital.

You may file return of your income and if the tax credited to the Central Government is more than the actual tax payable, you may claim refund from the department.

[Guest]

Thanks for the reply.
Can you please advise me on how can I or what form I need to take from the hospital administration stating that I have been paying income tax or that the hospital has been paying income tax on my behalf.

[DR.MARIAPPAN GOVINDARAJAN]

Once the tax is deducted at source, the deduction shall issue Form -16A to you in which the details of tax recovered from you and remittance of the same to the Department.

You can take Form 26AS from the website of the Income Tax Department (by registering yourself in the site) which will reveal the total tax paid by you and deducted by the Hospital.

If more doubt is still there you may better contact consultant with details.

[Ganeshan Kalyani]

The income received by you is a processional fees /income and as per section 194J of Income Tax Act TDS is liable to be deducted by the person paying such fees. in view of the same TDS is dedcuted from your fees.

The deductor of the TDS shall file return showing the details of tax deducted at source. deductee (your) PAN is disclosed in the return as a result of which the credit of the tax paid is reflected in your 26AS account and based on the same you can take the credit against the income tax that you may have to pay after computing GTI.

Deductor are supposed to issue you TDS Certificate which is a proof that they have deducted tax from your processional income. the same can be enclosed while filing ofline income tax return.

Either certificate or 26AS can be rwferred to check the deductor has correctly filed the return and whereby the credit is passed on to you. if any discrepancies in the amount deducted and the tax appearing in certificate or 26AS you may request the deductor to revise the TDS return . upon which correct tax would reflect in the certificate .

Thanks.

AI Summary

Tax Deduction at Source on professional fees requires issuers to provide TDS certificates and allow credit via Form 26AS. Payments for on call duties are professional income subject to Tax Deduction at Source by the payer, who must quote the payee's PAN, remit tax to the government, and issue a TDS certificate. The payee should verify tax credit via Form 26AS, file an income tax return to claim credit or refund where applicable, and request the deductor to revise TDS returns if discrepancies between deducted tax and credited tax appear.