Hello everyone, I recently joined a company as a G.E.T in Bangalore on a contract basis for a probation period of 1 year. They confirmed my salary of Rs. 15,250/-, from which they are deducting Rs. 1,525/-. Now, I want to know whether I'm eligible for this deduction. The same question I raised to HR, and they said that since I am in the probationary period (contractual employee), I must raise my bill, and as per the company's policy, TDS will be deducted from my bill.
I kindly request your help as the amount of deduction seems very high, especially in Bangalore. Please consider this as a formal request and let me know if there are any alternatives to avoid TDS deductions.
Thank you.
From India, Hyderabad
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I kindly request your help as the amount of deduction seems very high, especially in Bangalore. Please consider this as a formal request and let me know if there are any alternatives to avoid TDS deductions.
Thank you.
From India, Hyderabad
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Dear Friend,
I can understand your situation, but it is mandatory to deduct 10% as per income tax norms. If the payment is above Rs. 30,000/- during the financial year for consultancy charges, it is inevitable to deduct TDS. In your case, you are getting Rs. 15,250/- per month, so you are entitled to a tax deduction. What the company HR is saying is correct, and you need to raise an invoice for your payment, and they will deduct tax as per norms. The majority of companies follow the same procedure.
I know it is a sizable amount as a deduction, but it is compulsory as per the Income Tax Act. You can claim this amount at the time of income tax returns. As a consultant, you can show your expenses like conveyance, telephone, rent, general expenses, etc., as exemptions, then you can claim a refund. To do the same, contact a practicing Chartered Accountant or Tax consultant; they will guide you in the right manner.
There is no alternative to avoid income tax until you become permanent, I mean until you come onto the payroll. Once you get confirmation, then you will receive an amount under the head of salary where your tax calculation differs from consultancy. They won't deduct straight away at 10%; they will compute your income considering all savings and exemptions, then deduct tax accordingly.
I wish you all the best.
From India, Hyderabad
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86I can understand your situation, but it is mandatory to deduct 10% as per income tax norms. If the payment is above Rs. 30,000/- during the financial year for consultancy charges, it is inevitable to deduct TDS. In your case, you are getting Rs. 15,250/- per month, so you are entitled to a tax deduction. What the company HR is saying is correct, and you need to raise an invoice for your payment, and they will deduct tax as per norms. The majority of companies follow the same procedure.
I know it is a sizable amount as a deduction, but it is compulsory as per the Income Tax Act. You can claim this amount at the time of income tax returns. As a consultant, you can show your expenses like conveyance, telephone, rent, general expenses, etc., as exemptions, then you can claim a refund. To do the same, contact a practicing Chartered Accountant or Tax consultant; they will guide you in the right manner.
There is no alternative to avoid income tax until you become permanent, I mean until you come onto the payroll. Once you get confirmation, then you will receive an amount under the head of salary where your tax calculation differs from consultancy. They won't deduct straight away at 10%; they will compute your income considering all savings and exemptions, then deduct tax accordingly.
I wish you all the best.
From India, Hyderabad
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf