Perks of working as a consultant:
- You get to choose your clients, budget, and projects.
- You don’t always have to wait for the end of the month to get your salary credited to your bank account. Most clients pay as soon as you submit the project.
- You can choose to work from anywhere. You don’t need to travel to work and stress about reaching on time. However, you will have to ensure that you are meeting your deadlines for the designated task.
- You can enjoy your independence and work at your preferable time.
- Working as a consultant means minimal investment. You can easily start with a smartphone and a desktop/ laptop.
- You can avail of multiple tax benefits which cannot be availed by a regular employee.
Let’s take a look at the consultant tax benefits that you are entitled to receive:
- Lower rate of TDS: If you are working as an independent consultant, then the tax deducted at source in your case is flat 10.3%. On the other hand, TDS on the salary earned in the case of a regular employee is deducted on the basis of their tax slab.
- Option to minimize total outgo: Having the liberty to optimize income and expenses to reduce your total tax outgo is another major benefit. Most companies fail to design a proper salary structure for their regular employees. This makes it impossible for the employees to optimize the tax outgo, and they end up paying more amount as taxes.
- Easily avail consultant tax benefits: Working as a consultant makes it easier for you to deduct business expenses like:
- Car loan interest
- Motor vehicle insurance
- Stationery charges
- Courier service
- Internet charges
- Rent in case you are working from home
- Telephone bills
- Driver’s salary
- Maintenance charges for equipment like smartphones, laptops, etc
- Work-related travelling costs, etc.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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