TDS from payments to an ex employee

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Lakshmi (Querist)

03 December 2009 If a professor retires during the year and comes back to college after two months, during the same assessment year, as visiting faculty, at what percentage TDS has to be deducted from his honorarium? Will it still be proper to consider his payment under employee(As employer employee relationship was existing for some time during the A.Y )or under the category of professional payment(194J)? Can you please clarify?

Shyam Lal Naik

Shyam Lal Naik (Expert)

03 December 2009 You have choosed the word honorarium and not salary. Employer employee relationship absent. 192B not applicable.

Your 2nd option(194J) seems to be more logical.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

03 December 2009 Yes its depends upon Honorarium what you have suggest as Salary or Consultancy...
if its not Salary then you can go with sec.194J

M Prabhakar Menon

M Prabhakar Menon (Expert)

03 December 2009 On the date he ceases to be a proffessor the salary status ends When he begins after 2 months and payment is made for his services as a proffessional then the Provisions of 194J apply for the remaining part of the AY

O.D.SHARMA

O.D.SHARMA (Expert)

03 December 2009 The Deduction will depend on the contract. its a consultant or employee.section 192 is applicae if appointment wording says salary ,Else deduct as professional.

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