Dear Sir,
I am working in some consultants name disclosed.
My current Salary is 8,000 per month.
My total salary deductions is 1000 Rs including TDS and Professional Tax.
I am hardly getting a rounded amount of 7,000
Please tell me what should i do?
Even I dont have my salary slip.
Please tell me some solutions for this.
Regards,
Rakesh Singh
From India, Nasik
I am working in some consultants name disclosed.
My current Salary is 8,000 per month.
My total salary deductions is 1000 Rs including TDS and Professional Tax.
I am hardly getting a rounded amount of 7,000
Please tell me what should i do?
Even I dont have my salary slip.
Please tell me some solutions for this.
Regards,
Rakesh Singh
From India, Nasik
Dear Rakesh,
TDS means ' Tax Deducted at Sources' ie nothing but the Income Tax deduction from the sources of income, that is to be paid to the Govt (Statutoryly liable).
Applicable rate of TDS for providing Consultancy Services is 10.3% that is deducted on the invoice/bill value charged to parties. Suppose your Company raises bill for Rs.1.0 Lac for any consultancy service provided like Recruitment, Excise, IR, Labour services, Projects or any other to X Company, the X Cmpany will deduct Rs. 10300 from the bill as TDS and will be paid to Govt.
But I don't know for sure that the same recovered from the salary of employees. Pl. check with the terms & conditions of employment of any of your colleague or anybody in similar service. According to me it is not so.
I assume, that form Rs.8000, Rs 824 (TDS) & Rs. 175 (Prof Tax) is deducted and the net pay will be Rs.7001/-
thanks,
TMS
From India, Mumbai
2TDS means ' Tax Deducted at Sources' ie nothing but the Income Tax deduction from the sources of income, that is to be paid to the Govt (Statutoryly liable).
Applicable rate of TDS for providing Consultancy Services is 10.3% that is deducted on the invoice/bill value charged to parties. Suppose your Company raises bill for Rs.1.0 Lac for any consultancy service provided like Recruitment, Excise, IR, Labour services, Projects or any other to X Company, the X Cmpany will deduct Rs. 10300 from the bill as TDS and will be paid to Govt.
But I don't know for sure that the same recovered from the salary of employees. Pl. check with the terms & conditions of employment of any of your colleague or anybody in similar service. According to me it is not so.
I assume, that form Rs.8000, Rs 824 (TDS) & Rs. 175 (Prof Tax) is deducted and the net pay will be Rs.7001/-
thanks,
TMS
From India, Mumbai
If you are an employee with the agency, and your salary is Rs. 8000 with no other monetory benefits, I feel you should not be subjected to TDS i.e. Tax Deducted at Source (I Tax). The employer has been assigned the responsibility to deduct I Tax from employees from their salary and submit to the Itax dept.
You can get the point clarified with your supervisors / employer / accounts department. Income upto Rs. 110000 is exempt from Income Tax as on now. The proposed amendments effective 01.04.08 will further make it easy to employees. There is no point in subjecting an employee to TDS having monthly income of Rs. 8000. Ofcourse there has to be clarity about your not having any additional monetory benifits apart from salary.
Hope the I have been able to help you have clarity. Please give feedback and seek more clarification. I, others here on site will try.
- Hiten
From India, New Delhi
You can get the point clarified with your supervisors / employer / accounts department. Income upto Rs. 110000 is exempt from Income Tax as on now. The proposed amendments effective 01.04.08 will further make it easy to employees. There is no point in subjecting an employee to TDS having monthly income of Rs. 8000. Ofcourse there has to be clarity about your not having any additional monetory benifits apart from salary.
Hope the I have been able to help you have clarity. Please give feedback and seek more clarification. I, others here on site will try.
- Hiten
From India, New Delhi
You ask them to provide in written that they are deducting your TDS. In case you are an employee then they shouldnt deduct it from your salary. In case you are working on contract then they can deduct 10.1% as tax deducted at source but for that they must give you either a payment advice or a form 16 (which is generally issued at the end of the quarter or the financial year)
Do let us know in case you need any help in this.
Best Regards
Sumit
From India, Faridabad
Do let us know in case you need any help in this.
Best Regards
Sumit
From India, Faridabad
Hi
I totally agree with Hiten.
Do you have a pan card?
Would also like to clarify that whatever TDS is deducted it need to get filed within 7 days. In form no. 16 they have to specify the amount as well as the date corresponding to your deduction.
Secondly, if you are an employee, TDS will not be your part as it will be the employer's liability and not of the employee.
Regards,
Revathi
From India
I totally agree with Hiten.
Do you have a pan card?
Would also like to clarify that whatever TDS is deducted it need to get filed within 7 days. In form no. 16 they have to specify the amount as well as the date corresponding to your deduction.
Secondly, if you are an employee, TDS will not be your part as it will be the employer's liability and not of the employee.
Regards,
Revathi
From India
Hi,
I am also with Hiten but important thing will be ur contract with ur employer, how they consider ur services to them, If there is employer employee relation ur cant be subject to TDS with a salary of 8000 PM.
But if ur on with contract with providing services only as Individual contractor u can be subject to TDS @10.3%.
So ask for salary slip or copy of terms conditions of ur services.
See you again.........
From India, Pune
I am also with Hiten but important thing will be ur contract with ur employer, how they consider ur services to them, If there is employer employee relation ur cant be subject to TDS with a salary of 8000 PM.
But if ur on with contract with providing services only as Individual contractor u can be subject to TDS @10.3%.
So ask for salary slip or copy of terms conditions of ur services.
See you again.........
From India, Pune
Hi Rakesh Singh,
For Rs.8000 - 10.3 % TDS will be deducted as per TDS norms.
But as per Income Tax you no need to pay. Hence the amt can be reimbusted
from Govt by filling the returns.
The amt will be reimbusted once the papers are thru, But as per our Govt norms it will take soo much time by that time you will be Head HR for a company.
All the best for your future.
Regards,
Ramesh.A
From India
For Rs.8000 - 10.3 % TDS will be deducted as per TDS norms.
But as per Income Tax you no need to pay. Hence the amt can be reimbusted
from Govt by filling the returns.
The amt will be reimbusted once the papers are thru, But as per our Govt norms it will take soo much time by that time you will be Head HR for a company.
All the best for your future.
Regards,
Ramesh.A
From India
Dear Mr. Ramesh, Can you please explain in brief about the TDS norms of 10.3 %, like to whom this is applicable and how it is administered? Your guidance will be very much helpful to me. - Hiten
From India, New Delhi
From India, New Delhi
Dear Rakesh,
If your are an employee, according to you salary, there will be not TDS deduction for you.
You will be having PF deduction of Rs.480/-
ESI deduction of Rs.380/-
Professional Tax of Rs.80/-
So, your total deductions will be 480 + 380 + 80 = 940.
Hope this will help you out.
Regards,
Keshav
If your are an employee, according to you salary, there will be not TDS deduction for you.
You will be having PF deduction of Rs.480/-
ESI deduction of Rs.380/-
Professional Tax of Rs.80/-
So, your total deductions will be 480 + 380 + 80 = 940.
Hope this will help you out.
Regards,
Keshav
Hi All,
I am also facing same problem. I am on contract with some consultant and getting Rs. 12000. They are providing salary slip which is showing deduction of TDS 10% of my Salary. Why it is so. As I am not coming in Taxable slab, so why TDS is being deducted and one of my colleage that they will reimburse the amount. But my doubt is first they are deducting then will reimburse. If they have to reimburse so why they are deducting. Please clearify my doubt.
From India
I am also facing same problem. I am on contract with some consultant and getting Rs. 12000. They are providing salary slip which is showing deduction of TDS 10% of my Salary. Why it is so. As I am not coming in Taxable slab, so why TDS is being deducted and one of my colleage that they will reimburse the amount. But my doubt is first they are deducting then will reimburse. If they have to reimburse so why they are deducting. Please clearify my doubt.
From India
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TDS WORKING SHEET.xls