TDS

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akash sharma (Querist)
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27 October 2009 Whether it is possible that a person who is paid employee in a concern is also a contractor of same concern,if yes then which amount is liable for TDS ?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 October 2009 On contract amount 1% as individual. and on salary as per salary slab.

chetan soni

chetan soni (Expert)
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27 October 2009 But it may amount to tax planning & as per income tax rules & provision tax planning is not allowed.

ITO May make a consulsion that it is salary paid to such employee & there is lower deduction of TDS, he may diallow such amount of contract payment.

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CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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27 October 2009 Agree with chetan, in recent past DOT has disallowed some payments to retainers in Media companies as quasi employees.

It's better to do the contractors job in the name of other family members of the employee.

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 October 2009 agree with experts