Holi Offer: 10% OFF on CAclubindia Pro. Subscribe Now! Use Code: HOLIPRO10

Tax rate applicable for tds for payment to contractual labou

TDS 502 views 1 replies

Dhanashree Bhadke

District Account Manager

34 Points Joined February 2012

Hello!

Can we deduct tax @ 1% on payment to contractual employees in Government sector or we should deduct tds according to Sec.192?

Also, whether the provisions of Profession Tax are applicable? We should deduct the Profession tax according to given slabs of P.Tax on payment to contractual employees. Or if not then what is proper treatment please, tell me.

Replies (1)

DIBYENDU

SERVICE

266 Points Joined August 2008

In case of contractural employees you must deduct TDS U/s 192B of the Income Tax Act 1961 if tgere salary exceed taxable lemit and you must deduct Professional Tax according to the slab of respective state.