Tax liability for paying driver's salary.

retired and student 

so what is the tax liability?

mention source of income. where u want to add / deduct this , 

Are you referring to TDS liability?

As you have mentioned that the driver is not utilized for household purposes, please mention whether there is any other business for which the services of driver are utilized and income from the same, so that Tax liability can be ascertained.

Dear Mr.Arshad,

If the relationship is of employer and employee than TDS usually applies if the employer being an Individual is liable for Tax audit. However, your driver salary does not exceed Rs.2.5 Lakhs hence TDS is not applicable in your case.

However, Profession tax (PT) would be applicable depending upon the state in which you are conducting your business. Different state of India have different law for PT and in few state it is not appilicable at all, hence please check out the law of yours state.

Regards

Dharmesh

08898507555