One of my client is having only 3 staff in his office. He gives salary to one of his staff as Rs. 75,000/- per month and doesn't deduct any tds since he don't have TAN number. Is there any way to show this amount in the books in such a way so that he can escape the TDS compliance.
The only reason he don't want to take TAN number as he doesn't have many employees.
Salary amount is exceeding the exemption limit. Is there any other expense apart from Salary which can be given to employee so that salary amount expense can be reduced.
02 September 2019
Check if it can fit well under section 194 J Fees for professional or technical services. 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of— (a) fees for professional services, or (b) fees for technical services, or (ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or (c) royalty, or (d) any sum referred to in clause (va) of section 28,
02 September 2019
Yes, my client can give part of the salary amount to the employee as Professional fees. But the TDS deduction limit for 194J is 30,000/-. So he cannot give professional charges in excess to that and the total salary of the employee is 75,000/-. Still 45,000/- remains, which means on 45,000/- my client has to deduct tds as salary goes above exemption limit.
02 September 2019
please.... Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section :
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