Sir/Madame,
Is a pensioner engaged by Government for consultancy show his income as 50% of the total received and claim TDS as deducted by the employer? That is, a person earning ₹ 4 lakh as consultancy fee (besides the pension) claim TDS as deducted by the employer. If not, what percentage is deductible towards telephone bills and applicable items?
Will you please clarify.
V. Nagarajan
Delhi
Pensioner Seeks Clarity on Declaring Consultancy Income Under Section 44ADA and TDS Deductions A pensioner engaged by the government for consultancy work inquired about declaring income under Section 44ADA, specifically if they could claim 50% of their consultancy fee as income and the TDS deducted by the employer. Replies indicated that the individual must first verify if their profession is covered under Section 44AA(1) to claim benefits under Section 44ADA. If eligible, they can declare 50% of receipts as net profit, but TDS deducted by the client is not considered an expense. Expenses like telephone bills are assumed to be covered under the 44ADA benefit, and TDS credits can offset other taxable income. (AI Summary)
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