Tax deduction at source


This query is : Resolved 

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This discussion clarifies the tax deduction at source (TDS) applicable to payments made to employees on a 3-month contract basis. Despite the short-term nature and consolidated salary, the conditions of employment, including working under specific instructions and restrictions on other employment, suggest that TDS should be deducted under Section 192, treating the payment as salary.

04 November 2020 Under what section will be TDS be deducted for payments made to employees on contract basis of 3 months each. The appointment letter says that a sum of consolidated salary is paid and they will be working under the instructions of the branch manager w.r.t their duties and responsibilities and overall control and instructions of the general manager. They are entitled to only one day leave per month. No other benefits are available. They cannot undertake any other employment or personal practice.

04 November 2020 The appointment letter says that a sum of consolidated salary is paid

so deduct U/S 192 TDS On Salary as per slab basis

04 November 2020 Thank you sir for your reply.

23 November 2020 Thank you for the update.


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