One of my client a proprietory concern , not covered under TDS ( turnover is less than 1 crore ) , employed one person whose package is 5,00,000/-. As per requirement of TAN registration for Individual , they must have crossed turnover of one crore , and as his turnover in last 3 yrs is less than 1 cr , therefore my client has not registred for TAN. In this case does my client is reuired to deduct TDS on salary ? If yes , do cite case laws or clarification. If no , then employee himself has to pay the tax ?
Thanking you all in advance.
CAclubindia
