Tds on contract of erp software

TDS 1028 views 6 replies

my brother(an individual) was worked on contract basis in a company for 2months from may of this year, to create an ERP software.through which, he earned 40,000/-. he has no other income. is he subject to TDS? can the employer deduct TDS from his income?

Replies (6)

Yes, company can deduct TDS u/s 194J.

Yes company can deduct TDS.........

No deduction : 

If the aggregate amount of payment made/credited or likely to be paid/credited does not exceed Rs.30,000/- in a financial year (from 1.7.2010).

In this case payment exceeds 30000 limit so TDS deduction is necessary.

YES DEDUCTION MADE UNDER SEC 194 J

Boss!!!

 

it would depend on the contract b/w ur brother and company.

if ur brother is taken as employee then refer section 192(no TDS in ur case assuminf income for the whole year is below 1.6lacs).-

and if he is being hired as prefessional then yes 194J....

 

in ur case prima facie  it appears to be a case of professional hiring, but do check the contract.

yes, it will be go with 194J


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