Hi all, thanks for this platform. I am a small business owner and am in the process of hiring someone from a larger company. This will be my first time hiring an employee. I am offering a salary of 22,000 gross plus 300 DA for sales and marketing.
Provident Fund (PF) and Tax Deducted at Source (TDS) Concerns
I am unsure about the Provident Fund (PF) as I believe I am exempt since I have fewer than 20 employees. I also have no knowledge about Tax Deducted at Source (TDS). The potential employee has requested an appointment letter. Could you please advise on what should be included in an appointment letter?
My main concerns are regarding PF and TDS. How should I address these issues? Is there a way to avoid these complications and if so, how can I do that?
I would greatly appreciate your support.
Thank you all.
From India, Ghaziabad
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Provident Fund (PF) and Tax Deducted at Source (TDS) Concerns
I am unsure about the Provident Fund (PF) as I believe I am exempt since I have fewer than 20 employees. I also have no knowledge about Tax Deducted at Source (TDS). The potential employee has requested an appointment letter. Could you please advise on what should be included in an appointment letter?
My main concerns are regarding PF and TDS. How should I address these issues? Is there a way to avoid these complications and if so, how can I do that?
I would greatly appreciate your support.
Thank you all.
From India, Ghaziabad
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Provident Fund (PF) and Tax Deducted at Source (TDS) Considerations
Since you are not covered under PF, the employee will be out of PF. No issue.
Tax Deducted at Source (TDS) Strategy
TDS - Since the salary is crossing 2 Lacs, he is falling under Income Tax (I.T.). Better split the pay into Basic, HRA, Medical Assistance, and Conveyance, so that he may not fall under I.T. In such a case, no TDS is applicable.
Regards,
Pon
From India, Lucknow
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616Since you are not covered under PF, the employee will be out of PF. No issue.
Tax Deducted at Source (TDS) Strategy
TDS - Since the salary is crossing 2 Lacs, he is falling under Income Tax (I.T.). Better split the pay into Basic, HRA, Medical Assistance, and Conveyance, so that he may not fall under I.T. In such a case, no TDS is applicable.
Regards,
Pon
From India, Lucknow
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Death while in service letter for pf death claim.docx