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Tax liability for paying driver's salary.

29 January 2015

Respected CA's and law professionals. My father is retired and I am a student. My driver's salary is 18000/month and his services are not used for household purposes. Is my father liable to pay any kind of tax regarding payment of my driver's salary?

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6 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 February 2015

retired and student

so what is the tax liability?

mention source of income. where u want to add / deduct this ,

Aditya RVS (Practice) (221 Points)
Replied 01 February 2015

Are you referring to TDS liability?

As you have mentioned that the driver is not utilized for household purposes, please mention whether there is any other business for which the services of driver are utilized and income from the same, so that Tax liability can be ascertained.

Arshad A Mohammed (nil) (32 Points)
Replied 21 February 2015

Apologies for the late reply. My father has invested in a taxi company. The company has asked my father to maintain the car and the driver.

Arshad A Mohammed (nil) (32 Points)
Replied 21 February 2015

@ Mr. Aditya. Yes and also is my driver liable to any taxations?

Dharmesh (C.A.) (47 Points)
Replied 22 February 2015

Dear Mr.Arshad,

If the relationship is of employer and employee than TDS usually applies if the employer being an Individual is liable for Tax audit. However, your driver salary does not exceed Rs.2.5 Lakhs hence TDS is not applicable in your case.

However, Profession tax (PT) would be applicable depending upon the state in which you are conducting your business. Different state of India have different law for PT and in few state it is not appilicable at all, hence please check out the law of yours state.

Regards

Dharmesh

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