24 May 2011
Employees are required to furnish details of their income from sources other than salary & the same is to be incorporated in their total income for purpose of calculation of TDS liability by the employer. In present case, directors of a company are full time employees drawing salary & also are contractors in their individual capacity engaged in contract business with the same company. Is the company required to add their net income from contract business while calculating TDS on salary income? (Contract business being transport contract does not attract TDS under 194C). Please guide.
24 May 2011
Hi, As far as the Salary TDS computation is concerned Income under all heads needs to be considered. In this case the contract business share of profit to be shown under business income and added for TDS computation. Even though the TDS is exempt for transport operators on gross billing, the net profit in the business is part of the total income and needs to be considered for TDS on Salary.
24 May 2011
Hi, As far as the Salary TDS computation is concerned Income under all heads needs to be considered. In this case the contract business share of profit to be shown under business income and added for TDS computation. Even though the TDS is exempt for transport operators on gross billing, the net profit in the business is part of the total income and needs to be considered for TDS on Salary.
CAclubindia
