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I am an individual resident with salary income in India. Additionally, I earn money from an organization in Geneva through content writing. It is not tax deducted. How should I treat this income?

—Ashish

 

It is assumed that you are not paying taxes in any other country on the same income.

Further, assuming that you qualify as an ordinary resident of India, income received by you from the Geneva organisation towards content writing, will be taxable in your hands. The classification of the income would depend upon the contractual arrangements, periodicity of income, volume of transaction for which you receive the income, etc. In case if it is established that there is an employer-employee relationship between you and the Geneva organization, the income received by you shall be chargeable to tax as salary income. However, in case the contractual arrangement is in the nature of professional fees, the income received by you shall be taxed as income from business or profession.

In case the income is in the nature of professional income, depending on the gross receipts / income level – applicability of tax rates (i.e. normal or presumptive), applicability of GST, requirement of maintaining books of accounts, tax audit etc. should also need to be evaluated. Tax on the above income should be discharged by you through the prescribed advance tax instalments/ self-assessment tax.

 

For AY 2021-22, I have filed my ITR exactly as per AS and claimed refund but IT department has taken TDS less than shown in 26AS & paid less refund. How can I know the reason for this reduction in refund and can I claim the remaining refund?

—Dolly Moga

 

We have assumed that you have received intimation under section 143(1) of the Income-tax Act, 1961 (the Act) and as per the same the tax authorities (Centralized Processing Centre) have computed lower income tax refund via-a-vis the income tax refund claimed by you in your tax return for AY 2021-22. Generally, the details of TDS credit claimed vis-à-vis TDS credit considered by the tax authorities (i.e. details of matched v/s unmatched TDS claim) is mentioned in the explanatory table in the said intimation. You may refer to the details contained in the said table along with the computation provided in the intimation to understand the reason for reduction of refund.

Further, in order to claim the remaining refund, if the mistake is apparent from record, you should file an online rectification application under section 154 of the Act against the said intimation. You may refer the online rectification user manual available on the income tax portal for the purpose of filing the said online rectification application. Once the rectification application is processed successfully, the balance refund would be issued by the tax authorities.

In case, the matter is not resolved through above rectification request, further course of actions such as appeals, grievance may be evaluated, subject to the prescribed time frames.

Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.

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