Tax Saving....

CA Shashank Bansal (Executive-Audit) (57 Points)

09 July 2010  

Hi Freinds,

I m involved in an Audit of a small NGO. This NGO makes payment to teachers who teaches under priviledged childrens in slums and other construction sites. The NGO and these teachers does not have a employer employee relationship. The NGO makes a nominal payment ranging from Rs. 1000 to Rs. 5000 to these teachers depending on their experience and work. Now the problem is the NGO deducts TDS under Sec 194J on this amount as the total yearly payment exceeds Rs. 20,000 and issues Form 16A. The teachers want that no TDS should be deducted because they have to claim refund in there ITR which is never received. Now the NGO does not want these teachers on Payroll so as to avoid complaince with PF and other retirement benefits issues......can the tax deducted be saved so that full payment be made to the teachers........?????Guide me..............