Tds

This query is : Resolved

Rofy Shah (Querist)
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11 September 2019 Please give detail information about private limited company deducting tax at source of a employee and a consultant and difference between

Gokul Sharma

Gokul Sharma (Expert)
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12 September 2019 employees tds deducted under 192b and consultant under 192J read those sections

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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12 September 2019 TDS deduction for employee will come under section 192B. Here annual projection for TDS to be made in April for all employees having taxable income by taking all the salary components and deducting exempt allowance under section 10, house rent, professional tax. From that standard deduction, saving under section 80 C ( Maximum Rs.1,50,000), 80 D Medical insurance, National pension scheme - Rs.50,000/- . After that basic exemption of Rs,2,50,000/- is to be deducted. The tax slab at present is 250000-500000- 5%, 5,00,000-10,00,000 - 20% above 10,00,000- 30% plus 4% cess. For taxable income is less than Rs.5,00,000/- rebate will be given for tax payable. based on the above working, TDS to be deducted from empolyee salary in equal monthly installment.

TDS on professional service will come under section 194 J. It is to deducted @ 10%. Lower deduction is also possible , if the service porvider furnish certificate given by income tax officer permitting lower deduction

Karim N Shaikh

Karim N Shaikh (Expert)
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13 September 2019 employee : u/s 192,TDS deducted from salary after considering all chapert VI deduction eg LIC , Education Expenses , etc us section 80C /80d etc. if after considering all deduction if salary exceed 2.5 lakh then TDS required to calculate and deduct equally in proportion of 12
Consultant : u/s 194J is professional if amount i single bill or consolidate bill exceeds Rs 30000 then company required to deduct TDS @10% total amount and paid to government of 7 day of succeeding month.

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