Is there any tds liability on "wages" paid.

Dear All,

My company is paying wages to labour at work site. some are on daily basis and some are on monthly basis. So for few of them it is more than the basic exemption limit. So is there any liability to deduct TDS from this wages payment as in TDS section it is written only about salary. Please guide me regarding this issue.

Thanking You,

 

Tushar Drolia

Replies (8)

Wages are liable for TDS u/s 192B, but if the wages are below the basic exemption limit then there is no need to deduct TDS on it. But if the Labours are supllied by a Labour Contractor, then TDS is liable to be deducted on the Bill of the labor contractor if it exceeds Rs. 30000 and if it exceeds Rs. 75000 during the whole year.

 

Regards,

Devendra Kulkarni

i agree with above reply. when contract basic  labour than TDS are liable u/s 194C. than TDS rate in contract basic 1% for individual /HUF assessee and any other case like firm,co. etc than Rate is 2% of contract amount.

agree with the above 

Hi,

The Income tax Act, 1961 does not differentiate between 'Salary' and 'Wages' ie white collar vs blue collar or manual labour vs other labour/ employment.

It essentially seeks to tax any 'income' received from employment, as income under the head 'Salary'.

Therefore, you will need to follow the rules of Salary TDS for your site wage payments.

Cheers

Yes, since wages will come under the definition of salary as per IT Act, you need to deduct TDS wherever applicable.

Also, if labor is supplied to you by a contractor, then this isn't "salary", but payment to contractor and hence, TDS u/s 194C is liable to be deducted.

 Abhishek K. Pandey

Wages are liable for TDS u/s 192B, but if the wages are below the basic exemption limit then there is no need to deduct TDS on it. But if the Labours are supllied by a Labour Contractor, then TDS is liable to be deducted on the Bill of the labor contractor if it exceeds Rs. 30000 and if it exceeds Rs. 75000 during the whole year.

TDS IS TO BE DEDUCTED U/S 194 C .TDS ONCONTRACTOR..

Though few workers exceed the exemption limit, then try to collect the paper for the investment they have made, which may qualify for 80C, 80CCF, 80D deduction. In case of contracted labour, you need to deduct TDS on Contractors Bill u/s 194C. Thanks Mihir Doshi
i have paid by cash daily wages payment of One person in whole year of rs.286000/-

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