I need to know that I have applied for a job as a contractor in the IT sector. They offered me 1,200,000; however, HR said 10% TDS will be deducted, and on the remaining salary, you may need to pay tax, depending upon your investments. Is it true that the company can charge 10% TDS?
From India, Mumbai
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From India, Mumbai
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URL: [Income Tax India - Deposit TDS TCS](https://www.incometaxindia.gov.in/Pages/Deposit_TDS_TCS.aspx)
Section 194J
Kindly refer to this section. A 10% deduction on account of TDS is in order. Please understand that the company is not charging 10% TDS. The company is mandated to deduct TDS at specified rates and deposit the same with the IT department.
From India, Pune
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3251Section 194J
Kindly refer to this section. A 10% deduction on account of TDS is in order. Please understand that the company is not charging 10% TDS. The company is mandated to deduct TDS at specified rates and deposit the same with the IT department.
From India, Pune
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Dear friend,
I forgot to mention this before making any suggestions. Please clarify a few things as your description is unclear:
1. If you are an employee, will you be paid a salary? Even if you are on a contract as an employee, it can still be considered as salary.
2. If you are a consultant, the remuneration will not be classified as salary but as consultancy charges or professional fees.
3. If you are a contractor, it may be seen as a service contract. In this case, the remuneration is not salary but rather service charges.
The TDS deductions will depend on your clarification regarding the above. Concerning TDS rates, please note the following applicable points:
i) For salaries, up to 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, and the IT rates are for the Financial year 2018-19).
ii) If you are a consultant, the consultancy fees will attract IT @ 10% (u/s 194 J) TDS against every bill.
iii) For contractors - if a Proprietor - IT is @ 1%; if a Partnership/Co. @ 2% (u/s 194 C - TDS against every bill).
Thank you.
From India, Bangalore
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I forgot to mention this before making any suggestions. Please clarify a few things as your description is unclear:
1. If you are an employee, will you be paid a salary? Even if you are on a contract as an employee, it can still be considered as salary.
2. If you are a consultant, the remuneration will not be classified as salary but as consultancy charges or professional fees.
3. If you are a contractor, it may be seen as a service contract. In this case, the remuneration is not salary but rather service charges.
The TDS deductions will depend on your clarification regarding the above. Concerning TDS rates, please note the following applicable points:
i) For salaries, up to 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, and the IT rates are for the Financial year 2018-19).
ii) If you are a consultant, the consultancy fees will attract IT @ 10% (u/s 194 J) TDS against every bill.
iii) For contractors - if a Proprietor - IT is @ 1%; if a Partnership/Co. @ 2% (u/s 194 C - TDS against every bill).
Thank you.
From India, Bangalore
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