TDS & salary Querry

This query is : Resolved

Yogesh Modi (Querist)
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26 November 2008 Employee is working in Pvt Ltd company at 35000 pm & company pays salary by cheque to him.Now to avoid tax for employee, company is planning to show the wife of employee (wife is a graduate & doing Distant Learning MBA) as consultant or data entry opeartor in company books on part time basis. The company wants to pay a cheque of Rs 30000 in employee name for salary & balance Rs 5000 in wife's name as contractual/professional fees.Employee & wife will show the income in Income tax return alos.

wife has no other income.

What precaution to be by company and employee before doing so? what about TDS?

Plesae advice.

Regards
yogesh Modi

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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26 November 2008 YOU WILL DEDUCT TDS IF PAYMNETS ARE MORE THAN 20000/-DURING THE YEAR U/S 194J
YOU WILL APPOINT HER FOR PROFESSIONAL WORK AND AGGREMENT IS MADE BETWEEN CO.& LADY

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