Tds on salary

TDS 415 views 1 replies

Hi experts,

I have a situation here

One of our client which is a group of educational instutions operating as a society, consists of aided and unaided colleges.

For teachers working in aided college salary will be paid by government and for teachers in un aided college salary is paid by the college (society indirectly).

In some colleges due to non availability of teachers society is employing aided college teachers in un aided colleges also by paying salary (after aided college hours).

Client says that government prohibits a govt employee to work after regular working hours as stipulated by govt. (they say it is said in labour law). Still with some understanding teachers are working in both colleges.

The problem is client says they will deduct TDS for such teachers u/s 194J and not u/s 192 as they cannot have more than one employer.

Now I'm confused between these two sections. Under which section they should deduct TDS.

They say they enter into contract every year and it'll be renewed every year with such teachers.

Replies (1)

"lient says that government prohibits a govt employee to work after regular working hours as stipulated by govt. (they say it is said in labour law). "

Yes, they can not be employed as a regular employee, if the govt. comes to know about this then there will be consequences. 

 

I am taking that by "after aided college hours, you mean they will provide their services after 

Since they can not be regular employees, TDS u/s 192 is inappropriate. But that doesn't mean that 194J is appropriate head (since they can't act in professional capacity either)

TO BE EMPLOYED ,THEY CAN TAKE PERMISSION. THEY CAN ALSO TAKE PERMISSION TO ACT IN PROFESSIONAL CAPACITY

But in absence of any permission, this whole scheme is illegal, so I advice them to take written permission from their employer.

 

Although they are very well avoiding TDS u/s 192 and opting 194J, but am afraid that even this wont help. This is just fabrication of facts and has no real benefit except for change in head of income. If govt. comes to know of this , they will have to bare the consequences.

 

 

Other views are welcome.

 


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