27 February 2016
Sir My Friend is getting monthly salary 20000/ thousand & also getting 7lacs from Contractor income under 194 C & company is deducting tax 1 % only contractor Income. My Query is ,tax deducting by company is right ? or Company should deduct tax salary Rs 20000+700000 Contractor Income total 720000/ with normal income tax rate please clear
27 February 2016
Considering your query in 2 ways. If your friend is getting salary and contract income from same person such as his company, then company has to consider the total income Rs.9 lakh and deduct tax. If salary income from the company and contract income from some where else then , the company is not responsible for deducting tax on contract income unless you friend declare himself that he has contact income also
29 February 2016
Thanks U very much sir, now i clear that contract income under 194 c should be added in salary income & tax would be deducted as income tax slab, Thanks u lot Once Again
CAclubindia
