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Tds/ p. tax

Vineet Agarwal (Chartered Accountant) (87 Points)

04 January 2012

Can anyone help me in this matter?

There is a college which makes payment to various teachers other than educational purposes i.e. payments are made for cooking, dancing, guitar classes etc. Normally such teachers provide services for not more 10 days in a month i.e. they are not permanent in nature. The college is not deducting the TDS or profession tax. Can anyone suggest sec 194 j would be applicable or not or same is treated as salary whether profession tax would be deducted or not?

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2 Replies

Vijay Jadhav (Chartered Accountant) (22 Points)
Replied 05 January 2012

Originally posted by : Vineet Agarwal

Dear Vineet,

As per Definition given in Income Tax Act, 1961; any payment made by employer to employee will be taxed as Income From Salary and you should deduct TDS as per Sec.192, not Section 194J

Can anyone help me in this matter?

There is a college which makes payment to various teachers other than educational purposes i.e. payments are made for cooking, dancing, guitar classes etc. Normally such teachers provide services for not more 10 days in a month i.e. they are not permanent in nature. The college is not deducting the TDS or profession tax. Can anyone suggest sec 194 j would be applicable or not or same is treated as salary whether profession tax would be deducted or not?

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Prasad (Sr. Manager) (617 Points)
Replied 05 January 2012

Since the college is paying to its teachers (employees), the amount should be included along with the salary and tax to be computed on the same.

if your question is for teachers who are not regular employees of the college, then the TDS deduction U/s 194 J, is applicable subject to the limits prescribed.