Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 Hello sir, I am working as a junior research fellow of ISRO Project and this project is carried out by an autonomus institute from pune. I get Rs. 18000PM as salary. After two months they told me that TDS will be deduct from your salary. Will it be taxable? please let me know this and also under which section.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 February 2014 If u are on their payrolls and getting salary then TDS will be deducted u/s 192.

Individual Tax limit will be considered for calculation of TDS. Your annual income is Rs (18000*12)=216000

Upto Rs 200000/- tax is exempt. Since your income is below Rs 500000/- you are eligible for Tax Rebate of Rs 2000/-. So no TDS should be deducted from you.

But if they are paying you Fess and not salary then Section 194J will be attracted and TDS will be deducted from your payment @10%.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2014 Thank you very much for expertise, I am not on their payrolls, this project duration is one year and they pay me by cheque. My appointment is like contract basis for one year. And i had also taken education loan which amounts 3.75lakh. I have completed my B.Tech and joined as a Junior Research Fellow and also i havn't took admission for PG so there is no question of fees. Please tell me in which way i can exempt through this TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2014 Please tell me sir what to do....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 February 2014 If they are deducting TDS u/s 194J then you can claim refund by filing your Income Tax return.

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2014 But they told me that 10% of monthly salary i.e.1800 will deduct for TDS each month. I don't know how they calculated this, IS it true? And i get this amount 18000 as a stipend. I understand that, there is no tax for stipend or research fellowship. please help me out.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 February 2014 I think they are deducting TDS u/s 194J. Rate is 10%. You can claim the refund of TDS by filing income tax return.

Stipend is though exempt from Tax u/s 10(16). See case law from below link--

https://law.incometaxindia.gov.in/Directtaxlaws/act2005/%5B1990%5D184ITR0533(Mad).htm

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