TDS Deduction - Salary and Professional Fee from same company

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This discussion clarifies the TDS deduction rules when an employee receives both salary and professional fees from the same employer. The consensus is that both payments should generally fall under Section 192 of the Income Tax Act, which covers salary income. While some suggest professional fees could be deducted at 10%, the prevailing view is to include all payments to an employee under the salary TDS provisions. This approach accommodates situations where an individual's role shifts from employee to professional within the same organisation during a financial year.

Arun Kumar M

Arun Kumar M (Querist)

31 July 2024 Dear All,

Good Morning.

If an employee having salary income gets a professional fee from the same employer, the TDS deduction on whole amount (both salary and Professional fee ) should come in the purview of 192? or professional fee can be deducted @10 a% and salary under 192B?
Is there any mention in act for the same?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2024 Both salary and Professional fee should come in the purview of 192.
Salary include any fees paid to the employee.

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Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)

31 July 2024 Professional fees can be deducted @10% and salary u/s. 192 IT act. Both can be deducted, no specific rule over it.
There are many assesses having salary income converted to professionals in the same organization in the same financial year.

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