Tds on contractual employees in govt offices

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Prakash Gusain (Querist)
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02 April 2015 I m emp. In state run govt deptt on contract basis.
What rate/section of TDs will be applicable on my salary?

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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02 April 2015 In case, contract agreement between you and dept, then tds rate will be 1% u/s. 194C

Otherwise, tds will be computed as
Total Income recd
Less: deduction
Taxable income
Tax on taxable income
Tax amount

No.of months you worked

TDS will be - Total tax amount will be divided by the no.of months, you worked

Prakash Gusain

Prakash Gusain (Querist)
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02 April 2015 Thx
My employer is insisting to deduct @10% u/s 194j
Please advise on relevant references to support of u/s 194c.

Rgds

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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02 April 2015 In case work involves mannual work, effort, then it will be comes under section 194C

In case work involves the skill, talent, mind then it will be comes under section 194I

So, you can decide yourself, your scope of work falls under which section.

Prakash Gusain

Prakash Gusain (Querist)
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02 April 2015 Thanks,
Sir,

Could u plz put some references to convince my employer (if available).
Thanks & regards

Pg