I want to know the percentage and rule for a tax deduction for contractual employees hired in a Section 8 company for a short time period like 6 months, 9 months, or so on. Sometimes the contract may be extended. In which section is the tax deducted, and what is the slab for the calculation?
In Section 8 companies, we hire employees for different projects, and they deliver their services to those projects.
From India, New Delhi
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In Section 8 companies, we hire employees for different projects, and they deliver their services to those projects.
From India, New Delhi
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Hi @Priyanka,
The word "employee" should not be used for contract-based jobs; instead, they are contract workers. TDS sections 194C or 194J would be applicable, depending on the nature of the contract. For the threshold limit and applicable rate, please get in touch with your auditors. There are certain clauses regarding the submission of IT-related documents by contract workers before fixing the applicability of TDS rates. In the absence of any document, it should be charged at the maximum applicable rates.
Please let me know if you need any further assistance.
Thank you.
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651The word "employee" should not be used for contract-based jobs; instead, they are contract workers. TDS sections 194C or 194J would be applicable, depending on the nature of the contract. For the threshold limit and applicable rate, please get in touch with your auditors. There are certain clauses regarding the submission of IT-related documents by contract workers before fixing the applicability of TDS rates. In the absence of any document, it should be charged at the maximum applicable rates.
Please let me know if you need any further assistance.
Thank you.
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