Dhanashree Bhadke (District Account Manager) (34 Points)
30 May 2012Hello!
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.
DIBYENDU
(SERVICE)
(266 Points)
Replied 31 May 2012
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.
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