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tds on salary

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

03 October 2007

hi all,

my friend is working with a co. and he is getting 11000/ pm he saya that the company is deducting tds on salary @ 10.5%. Is it right or not bcoz tds should be deducted by calculation as per income tax rates.Or is it right way if yes then plz tell me about 10.5%

thanks

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7 Replies

MAHENDRA IYER (SERVICE) (315 Points)
Replied 03 October 2007

I guess he is working on a contract basis and he is not on payroll. That is the reason Tax has been deducted as per the provisions of section 194J where the rate is 10.3%.

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CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 03 October 2007

Mr. Gaurav, Is your friend a professional? If yes then it may be that employer is treating him as a consultant Off-Roll.

Anand (481 Points)
Replied 03 October 2007

If he is working on a contractual basis then they will deduct TDS as per Sec 194J i.e 10%+EC. If he is not working on contractual basis then the rate at which they are making TDS is wrong.