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Whats better between a complete salary structure ie PF, Gratuity, LTA or Plain Professional fees?

  • given a choice between a complete salary structure ie PF, Gratuity, LTA etc or plain professional fees, what's better? do try n explain the pros and cons of both.

  • Answer:

    Salary is paid to an employee. Certain components like PF, Gratuity, LTA , HRA, Medical reimbursement etc. are exempt from tax. You have to file ITR 1 or 2 and income is transparent. Professional fee is paid to a non-employee. Your income is categorised as Income from Profession. You have to file ITR 4. You can claim expenses. Income is not transparent. HMT

Sanmesh M at Yahoo! Answers Visit the source

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First is secure, stable however it will not be under your control. The latter is flexible. you will be owner who has to deiced what it will be. in case of first, you can not be escape from the net of IT dept. while in case latter, you can show so many expenses you wish so and you can prepare a NIL return! In case of salary, your consent is secondary. So, fees is better if you can take risk and your client should be agree on it.

mitra2009

Plain Professional fees is a better option. As a consultant , you can write off all your expenses and pay lesser or no tax.

ranjankar

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