Freelance Faculty Payments: Tax, Contracts, and Payment Methods Explained

Dear HR Experts,

Greetings for the day!

One of my friends has recently opened a coaching centre in Delhi NCR, and he is in the process of finalizing the freelance faculties for English, Maths, Science, and Personality Development. The faculties will be paid on an hourly basis.

He has the following queries:

- Is TDS applicable if the payments are greater than Rs. 10,000 in a month?
- Can anyone please share the offer and appointment letter format for a freelance faculty?
- What will be the mode of monthly payments to teachers, i.e., via bank transfer, cheque, or cash?

Request you all to kindly provide your inputs.

Dear Abhinav, Replies to your questions are as below:

- Is TDS applicable if the payments are greater than Rs. 10,000/- in a month?

Reply: Under the provisions of Section 194J of the IT Act, TDS is applicable provided the payout in the financial year exceeds Rs 30,000/-.

- Can anyone please share the Offer and Appointment letter format for a Freelance Faculty?

Reply: Remove the clauses related to labor laws from the appointment letter, and it becomes suitable for freelance faculties. There is no employer-employee relationship in this case.

- What will be the mode of monthly payments to teachers, i.e., via Bank transfer / Cheque / Cash?

Reply: This question is broadly humorous. Doubt could creep into one's mind when a person who would like to start his/her business asks such childish questions!

Thanks,
Dinesh Divekar