Hello Every One,
I joined a company recently as G.E.T in Bangalore on contract basis for a probation period of 1 year. They confirmed my salary of Rs 15250/- in that they are deducting Rs1525/-. Now I, want to know weather I'm eligible for this deduction, the same question I raised to Hr they said that now your in Probationary period(Contractual employee) you must raise your bill and as per companies policy TDS will be deducted from your Bill. Kindly help me out such as the amount of deduction is very high and that too in Bangalore, So please kindly consider this as a request and let me know are there any alternative for not deducting TDS.
From India, Hyderabad
I joined a company recently as G.E.T in Bangalore on contract basis for a probation period of 1 year. They confirmed my salary of Rs 15250/- in that they are deducting Rs1525/-. Now I, want to know weather I'm eligible for this deduction, the same question I raised to Hr they said that now your in Probationary period(Contractual employee) you must raise your bill and as per companies policy TDS will be deducted from your Bill. Kindly help me out such as the amount of deduction is very high and that too in Bangalore, So please kindly consider this as a request and let me know are there any alternative for not deducting TDS.
From India, Hyderabad
Dear Friend,
I can understand your situation but it is mandatory to deduct @ 10 % as per Income tax norms . If payment is above Rs. 30,000/- during the financial Year for consultancy charges it is inevitable to deduct TDS. In your case you are getting Rs. 15,250/- P.M so you are entitled for tax deduction. What they are (company HR) is saying is correct and you need to raise an invoice for your payment and they will deduct tax as per norms. Majority companies does the same procedure.
I know it is a sizable amount as a deduction but it is compulsory as per Income Tax act. You can claim this amount at the time of Income Tax returns. As a consultant you can show your expenses like conveyance, Telephone, Rent, General Expenses etc..as exemptions then you can claim for refund. For doing the same contact a practicing Charted Accountant or Tax consultant they will guide you in right manner.
There is no alternative to avoid the Income tax until you get permanent I mean until you come into payroll. Once you get conformation they you will get amount under the head of salary here your tax calculation is differs from consultancy. They won’t deduct straight away @ 10%, they will compute your income with consideration of all savings and exemptions, then they deduct tax accordingly.
I wish you all the best.
From India, Hyderabad
85I can understand your situation but it is mandatory to deduct @ 10 % as per Income tax norms . If payment is above Rs. 30,000/- during the financial Year for consultancy charges it is inevitable to deduct TDS. In your case you are getting Rs. 15,250/- P.M so you are entitled for tax deduction. What they are (company HR) is saying is correct and you need to raise an invoice for your payment and they will deduct tax as per norms. Majority companies does the same procedure.
I know it is a sizable amount as a deduction but it is compulsory as per Income Tax act. You can claim this amount at the time of Income Tax returns. As a consultant you can show your expenses like conveyance, Telephone, Rent, General Expenses etc..as exemptions then you can claim for refund. For doing the same contact a practicing Charted Accountant or Tax consultant they will guide you in right manner.
There is no alternative to avoid the Income tax until you get permanent I mean until you come into payroll. Once you get conformation they you will get amount under the head of salary here your tax calculation is differs from consultancy. They won’t deduct straight away @ 10%, they will compute your income with consideration of all savings and exemptions, then they deduct tax accordingly.
I wish you all the best.
From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf