I need know that I have applied for job as contractor in IT sector. They offered me 1200000 however HR said 10% TDs will deducted and on remaining salary you may need to pay tax as depending upon your investment. Is this true company can charge 10% TDS?
From India, Mumbai
From India, Mumbai
https://www.incometaxindia.gov.in/Pa...t_TDS_TCS.aspx
Section 194J
Kindly refer this section.
10% deduction on a/c of TDS is in order.
Please also understand company is not charging 10% TDS.
Company is mandated to deduct TDS at specified rates and deposit the same with IT.
From India, Pune
3131Section 194J
Kindly refer this section.
10% deduction on a/c of TDS is in order.
Please also understand company is not charging 10% TDS.
Company is mandated to deduct TDS at specified rates and deposit the same with IT.
From India, Pune
Dear friend,
I forgot to tell this- before I suggest anything, pl. clarify few things, your description is not clear -
1.If You are 'an employee' , will be paid 'salary'? Even if you are on a 'contract' & an employee it can be considered as 'salary';
2. If you are a 'consultant' then the remuneration to you will not be considered as salary but 'consultancy' charges/professional fees/charges;
3. If you are a 'contractor' then it can be considered as 'service contract' and if yes, the remuneration is not 'salary' but will be 'service charges'
TDS will depend on your clarification on the above. However, so far as rates of TDS is concerned, pl note the following as applicable:
i) If salary, upto Rs.2,50,000 - IT is NIL; 2, 50,000 to 5,00,000 @ 5%; 5,00,000 to 10,00,000 @ 20%; Above 10,00,000 @ 30%.(TDS every month/Quarter & the IT rates are for Financial year 2018-19);
ii) If a 'consultant' the consultancy fees/charges will attract IT @ 10% (u/s 194 J) TDS against every bill;
iii)If a 'contractor' - and a 'Proprietor' -IT is @ 1%; if Partnership/Co. @ 2% (u/s 194 C - TDS against every bill).
From India, Bangalore
I forgot to tell this- before I suggest anything, pl. clarify few things, your description is not clear -
1.If You are 'an employee' , will be paid 'salary'? Even if you are on a 'contract' & an employee it can be considered as 'salary';
2. If you are a 'consultant' then the remuneration to you will not be considered as salary but 'consultancy' charges/professional fees/charges;
3. If you are a 'contractor' then it can be considered as 'service contract' and if yes, the remuneration is not 'salary' but will be 'service charges'
TDS will depend on your clarification on the above. However, so far as rates of TDS is concerned, pl note the following as applicable:
i) If salary, upto Rs.2,50,000 - IT is NIL; 2, 50,000 to 5,00,000 @ 5%; 5,00,000 to 10,00,000 @ 20%; Above 10,00,000 @ 30%.(TDS every month/Quarter & the IT rates are for Financial year 2018-19);
ii) If a 'consultant' the consultancy fees/charges will attract IT @ 10% (u/s 194 J) TDS against every bill;
iii)If a 'contractor' - and a 'Proprietor' -IT is @ 1%; if Partnership/Co. @ 2% (u/s 194 C - TDS against every bill).
From India, Bangalore
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