Tds deduction on employee salary (proprietorship firm)

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Vijay (Querist)
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19 June 2017 Dear Mates,

I'm a new startup of proprietorship firm (Registered Under Service Tax / GST) with turnover around 10 Lacs and want to know is TDS deduction applicable on my one & only employee?

Salary of the employee is INR 20,000 / Per Month.

Looking for help.

Thanks

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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19 June 2017 Salary is below taxable limit.Hence no need to deduct TDS on salary.

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Vijay

Vijay (Querist)
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19 June 2017 Dear Rashmi,

Thanks for your reply. Can you please tell me the barrier of salary where single employee proprietorship firm (Registered Under Service Tax / GST) have to deduct TDS.

Looking for help. Thanks

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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19 June 2017 No barrier is there as such. Only simple formalities to complied with

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Vijay

Vijay (Querist)
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20 June 2017 Dear Rashmi,

Thanks for your reply. I was actually discussing with someone and he told me that the barrier is of INR 2,50,000 for salary after that I need to deduct TDS. Is it so?

Looking for help, because I'm bit confused and don't want to face any penalties.

Thanks

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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20 June 2017 Yes if income of an employee is less than Rs.270000/- then you are not required to deduct TDS.

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Vijay

Vijay (Querist)
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21 June 2017 Dear Rashmi,

Thanks for your reply. What if I hire another employee with salary at INR 35,000 / per month then what are formalities/responsibilities I have to take as company and employee has to take?

Looking for your help. Thanks

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Then you have to deduct TDS. For that you have to apply for TAN. Deposit TDS deducted out of salary upto 7th of next month. File TDS return upto 31 July, 31 Oct, 31 Jan & 31 May quarterly.

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Vijay

Vijay (Querist)
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02 July 2017 Dear Rashmi,

Thanks for all your inputs. Can you help with: https://www.caclubindia.com/experts/gst-inoice-numbering-2502409.asp

Thanks

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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02 July 2017 Welcome.....

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