Confused About TDS Deductions During Probation? Seeking Advice on Company Policies

Hi, I am currently on a probation period with an IT company. They informed me that I would have a fixed compensation with no deductions until I complete my 6 months. However, the Accounts department now states that they will be deducting TDS at 5.1% from my salary. Can anyone please advise me on the rules and procedures regarding this issue?

Deepali

Dear Deepali,

Let me try to answer your query. The rate of TDS mentioned by you is applicable TDS rate for professional services payments and not for salary payments. This means that during the current period, you are paid towards professional charges, and the TDS is deducted accordingly. You need to get the TDS certificates from your company, and for that, you need to submit your PAN number to them. You will show these receipts as business income and can also claim the expenses incurred by you to render these services, such as traveling expenses, telephone expenses, books, stationery, etc. You need to file your return by July 31 for assessment. I hope this satisfies your question; let me know if you need more help.

Thanks,
Pankaj Patodi

Dear Pankaj Patodi,

Let me try to answer your query. The rate of TDS mentioned by you is applicable for professional services payments and not for salary payments. This means that during the current period, you are paid towards professional charges and the TDS is deducted accordingly. You need to get the TDS certificates from your company, and for that, you need to submit your PAN number to them. You will show these receipts as business income and can also claim the expenses incurred by you to render these services. The expenses will include traveling expenses, telephone expenses, books, stationery, etc. You need to file your return by 31 July for assessment. I hope this satisfies your question; let me know if you need more help.

Thanks, Deepali

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