dkariro
1
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
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.
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
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.
