Is TDS Deduction Needed for My Only Employee Earning INR 20,000 in a Proprietorship Firm?

Dear Mates,

I'm a new startup of a proprietorship firm (Registered Under Service Tax / GST) and want to know if TDS deduction is applicable to my one and only employee. The salary of the employee is INR 20,000 per month.

Looking for help.

Thanks

No, the TDS under section 192B cannot be deducted if the salary does not cross the minimum chargeable tax amount, which is ₹250,000 in a year. In the case of a monthly salary of ₹20,000, this amount does not exceed the limit.

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@Labour Law Index, Thank you for your reply. So, you mean to say if the barrier crosses INR 2,50,000, then my proprietorship firm (Registered Under Service Tax / GST - Turnover 12 Lacs) has to deduct TDS, is that correct? If yes, then how, because I don't have a TDS Certificate, etc.

I am looking forward to your help. Thank you.

Dear Mr. Vijay,

You have to obtain a "TAN" for the deduction and remittance of TDS.

Dear Vijay, since you are a newly started proprietary firm with a turnover of 12 Lakhs, tax audit u/s 44AB is not applicable to you. In the absence of a tax audit, you are not required to deduct TDS even though the payment/salary exceeds the specified threshold limit. However, partnership firms and companies are excluded from this exemption. If any partnership firm or company makes a payment exceeding the threshold limit, TDS must be deducted irrespective of tax audit.

Thanks & Regards,

V. SHAKYA
HR & Labour, Corporate Laws Advisor