Need Quick Help: What's the Latest on TDS for Consultants and Earned Leave Calculations?

Guys:

I have a few queries that I need your valuable responses to at the very earliest.

1. What is the percentage of TDS to be deducted for the Consultant? (To my knowledge, it is 5.33%, but I heard that there has been a change in it. Please let me know.)

2. What is the formula for calculating the Earned Leaves (EL), and is it calculated on Gross or Basic?

Early responses would help a lot.

Thanks,
- Mirza

Hi Mirza,

I believe that the TDS deduction rate is now 10.3%, and I am unsure about EL.

Regards,
Saravana

Hi Mirza,

Yes, TDS is 10.3%, and it's being deducted from the consultants.

Earned leave will be calculated on the basic salary only. The formula to calculate EL is Total Basic Salary divided by the Total Number of Months he worked, multiplied by the number of earned leaves divided by thirty days.

If you have any clarifications, please let me know.

Regards,
Vinay
9849996015

Hi Mirza,

The revised TDS percentage is effective from June 1st, 2007, as confirmed by my finance team.

Regards,
Vinay

1) TDS on professional services is 10.3% for individuals and 11.33% for companies.

2) It depends on the company policy; some companies will calculate it based on BASIC+DA or Gross.

Regards,
Charan