Dear Sir,
I'm a contractual employee (project coordinator) with an NGO (Non-Governmental Organization). My salary is ₹25,000 per month, and 10% tax is deducted every month. I want to know the correct TDS rate for contractual employees. Many people have advised me that the organization deducted 9% more TDS, and only 1% TDS should be deducted for contractual employees. Can organizations deduct TDS of 10% or 1% for contractual employees? Please confirm which is correct.
Location: Kolkata, India
From India, Kolkata
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I'm a contractual employee (project coordinator) with an NGO (Non-Governmental Organization). My salary is ₹25,000 per month, and 10% tax is deducted every month. I want to know the correct TDS rate for contractual employees. Many people have advised me that the organization deducted 9% more TDS, and only 1% TDS should be deducted for contractual employees. Can organizations deduct TDS of 10% or 1% for contractual employees? Please confirm which is correct.
Location: Kolkata, India
From India, Kolkata
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In India, the taxation laws regarding TDS (Tax Deducted at Source) for contractual employees are governed by the Income Tax Act. For contractual employees, the TDS rate can vary depending on the nature of the contract and the terms agreed upon. Here is a practical explanation to address your concern:
📵 Understanding TDS for Contractual Employees in India:
- For contractual employees, the organization is required to deduct TDS based on the total income earned during the financial year.
- The standard TDS rate for contractual employees in India is 10%. However, there are scenarios where the TDS rate can be lower, such as 1%, if specific conditions are met.
📡 Determining the Correct TDS Rate:
1. Verify your employment contract and ensure that the terms regarding TDS deduction are clearly outlined.
2. Consult with the finance or HR department of your NGO to understand the basis for the 10% TDS deduction from your salary.
3. Request for clarification on why the TDS rate is set at 10% and seek information on any exemptions or provisions that could apply to contractual employees.
🔍 Steps to Address the Discrepancy:
1. Document your concerns regarding the TDS deduction and raise this issue formally with the relevant department.
2. Request a detailed explanation or a revised calculation of your TDS deductions based on the applicable rate for contractual employees.
3. If necessary, seek guidance from a tax consultant or legal professional to ensure compliance with tax regulations.
🗄️ Additional Resources:
- For specific details on TDS rates and provisions for contractual employees, you can refer to the official website of the Income Tax Department of India: https://www.incometaxindia.gov.in.
By following these steps and seeking clarification from the appropriate authorities, you can address the discrepancy in TDS deduction and ensure compliance with tax regulations as a contractual employee in Kolkata, India.
From India, Gurugram
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40📵 Understanding TDS for Contractual Employees in India:
- For contractual employees, the organization is required to deduct TDS based on the total income earned during the financial year.
- The standard TDS rate for contractual employees in India is 10%. However, there are scenarios where the TDS rate can be lower, such as 1%, if specific conditions are met.
📡 Determining the Correct TDS Rate:
1. Verify your employment contract and ensure that the terms regarding TDS deduction are clearly outlined.
2. Consult with the finance or HR department of your NGO to understand the basis for the 10% TDS deduction from your salary.
3. Request for clarification on why the TDS rate is set at 10% and seek information on any exemptions or provisions that could apply to contractual employees.
🔍 Steps to Address the Discrepancy:
1. Document your concerns regarding the TDS deduction and raise this issue formally with the relevant department.
2. Request a detailed explanation or a revised calculation of your TDS deductions based on the applicable rate for contractual employees.
3. If necessary, seek guidance from a tax consultant or legal professional to ensure compliance with tax regulations.
🗄️ Additional Resources:
- For specific details on TDS rates and provisions for contractual employees, you can refer to the official website of the Income Tax Department of India: https://www.incometaxindia.gov.in.
By following these steps and seeking clarification from the appropriate authorities, you can address the discrepancy in TDS deduction and ensure compliance with tax regulations as a contractual employee in Kolkata, India.
From India, Gurugram
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