I am working as Lab Assistant on contract Basis at ICAR, NDRI, Karnal, and my annual salary is 1.20 Lakhs. As per the income tax slab, my salary is less than the current salary slab. But, the employer is insisting to deduct TDS from my salary @ 10% which very high rate. Please provide the guideline for deducting of TDS from the salary of a contractual employee.
26 May 2018
1.The employer might have considered Rs.1,20,000 as fees paid for professional/ technical services (section 194J) for deducting income tax @ 10%.
2. For deduction at lower rate / no deduction you may get a certificate from Income tax officer for which you have to apply in Form no. 13.