TDS FOR SELF EMPLOYED PROFESSIONAL

Dear Sir,

I have been a salaried person since last 17 years. Now I have decided to start consultation assignments. Can you please guide me on How much TDS will my clients deduct from my fees. I have been able to negotiate an annual retainership fee with my clients wherein I will be getting the amount every month by cheque.

For eg if I am getting Rs. 50000/- retainership from a client per month how much TDS will he deduct?

Hope my question is clear.

Regards

asked Jun 24 '11 at 23:39 by dkariro 1111


@Dkariro,

Your client will deduct flat 10% TDS on monthly retainership fees Rs. 50000/-.Therefore you will get net amount of Rs. 45000/- PM and also they will give you TDS certificates on quarterly basis.

answered Jun 27 '11 at 14:45 by sagar 4012

link
Thanks a lot for your prompt response. One more query. Now when I am self employed I can deduct my expenses from my earnings and then fill ITR Based on the balance between my earnings and expenses. i.e lets say I earn 10 Lacs in a year from my clients and they have deducted 1 lac as TDS. Since this is going to be my start up year I shall be making some investments and will have some fixed costs per month in form of travelling, Office Maintainence, phone, electricity etc. so can i deduct all these from my earnings? Regards
(Jun 29 '11 at 13:34) dkariro
For self employed or person with income from business/profession, profit/loss account needs to be maintained which will have record of all business related expenses. Income tax will be payable only on net profit after all expenses.
(Jun 29 '11 at 20:45) pankaj

Know someone who can answer? Share a link to this question via email, twitter , or facebook
.

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×48
×5

Asked: Jun 24 '11 at 23:39

Seen: 1,997 times

Last updated: Jun 29 '11 at 20:45