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Contractual employee on a fixed remuneration

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Sanjeev Bats

5 Points Posted on 04 April 2023

If an organization appoints contractual employee on a fixed remuneration and total yearly remuneration is below taxable limit, TDS will be deducted @ 1% or 10%. Suppose work is clerk level

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Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) implications for contractual employees paid a fixed remuneration. It explores whether TDS applies when the total annual pay falls below the taxable limit, and discusses the applicable TDS rates of 1% or 10%. The conversation also touches upon whether payments are fixed monthly or performance-based.