Dear Seniors,
I have been appointed in a company on a fixed-term contract for 2 years, and my package is 2 lakhs per annum. Now, I want to know what would be the TDS deduction on my salary. Kindly let me know at the earliest.
Thanks,
Hema
From India, Bangalore
Acknowledge(0)
Amend(0)
1I have been appointed in a company on a fixed-term contract for 2 years, and my package is 2 lakhs per annum. Now, I want to know what would be the TDS deduction on my salary. Kindly let me know at the earliest.
Thanks,
Hema
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Hema,
You will not have any TDS. As per the new IT slab for the financial year 2008-2009, up to 1.8L per annum, there would not be any IT deductions for female employees. If you produce a receipt for HRA (House Rent Allowance), then it would be considered as reimbursement. So, you would fall below the 1.8L slab.
From India, New Delhi
Acknowledge(0)Amend(0)
You will not have any TDS. As per the new IT slab for the financial year 2008-2009, up to 1.8L per annum, there would not be any IT deductions for female employees. If you produce a receipt for HRA (House Rent Allowance), then it would be considered as reimbursement. So, you would fall below the 1.8L slab.
From India, New Delhi
Acknowledge(0)Amend(0)
Hi Prathima,
Thanks for your suggestion. The IT slabs you mentioned are for female employees who are on a permanent role. What about me? I was directly appointed through the company but on a fixed contract tenure for 2 years. Will I also have the same slabs? Kindly clear my doubts. Please don't mistake me.
Thanks,
Hema
From India, Bangalore
Acknowledge(0)Amend(0)
Thanks for your suggestion. The IT slabs you mentioned are for female employees who are on a permanent role. What about me? I was directly appointed through the company but on a fixed contract tenure for 2 years. Will I also have the same slabs? Kindly clear my doubts. Please don't mistake me.
Thanks,
Hema
From India, Bangalore
Acknowledge(0)Amend(0)
It is same for everyone. Only for those who are in consulting mode will have a tax deduction of 10.3% flat. But in ur case there would not be any tax deductions.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Hi Hema,
It does not matter whether it is for fixed-term employment or permanent employment. TDS liability depends on whether it is a consulting engagement (to qualify for 10% TDS) or in the nature of an employer-employee relationship. In your case, prima facie, it looks like it is an employer-employee relationship, so TDS shall be deducted under section 192 of the Income Tax Act.
Regarding HRA deduction suggested by another group member, that will be allowed only if your compensation and allowance break-up from the company has an HRA element in it. Besides, there are other exempt/FBT allowances as well which will lower your TDS burden. So, the final calculation will depend on the structure of compensation you are getting. If the structure is planned wisely, a 2 lakh CTC per annum should not attract a single penny in TDS.
Regards,
CA Rajat Mehta
From India, Lucknow
Acknowledge(0)Amend(0)
It does not matter whether it is for fixed-term employment or permanent employment. TDS liability depends on whether it is a consulting engagement (to qualify for 10% TDS) or in the nature of an employer-employee relationship. In your case, prima facie, it looks like it is an employer-employee relationship, so TDS shall be deducted under section 192 of the Income Tax Act.
Regarding HRA deduction suggested by another group member, that will be allowed only if your compensation and allowance break-up from the company has an HRA element in it. Besides, there are other exempt/FBT allowances as well which will lower your TDS burden. So, the final calculation will depend on the structure of compensation you are getting. If the structure is planned wisely, a 2 lakh CTC per annum should not attract a single penny in TDS.
Regards,
CA Rajat Mehta
From India, Lucknow
Acknowledge(0)Amend(0)
Thanks, But i have another question, would i be getting a payslip, my salary will be crediting directly to the corporate account or will they pay me by cheque. Pls clarify this. rgd, hema
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi, Thanks a lot,
I have a question. Will my salary be credited to the corporate account, or will I be paid by cheque? Also, will they provide me with a payslip? Kindly clarify this. The company is performing very well in Mumbai and has business all over India.
Regards,
Hema
From India, Bangalore
Acknowledge(0)Amend(0)
I have a question. Will my salary be credited to the corporate account, or will I be paid by cheque? Also, will they provide me with a payslip? Kindly clarify this. The company is performing very well in Mumbai and has business all over India.
Regards,
Hema
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
If it is an employer-employee relationship, they surely would give you a salary slip. And obviously, the choice is yours whether to get the cheque or have the amount directly credited to your bank account. However, if the company has a strict policy of crediting to your account, they would normally not entertain a request for a cheque unless there is a genuine reason, such as problems or delays in opening a bank account.
From India, Lucknow
Acknowledge(0)Amend(0)
If it is an employer-employee relationship, they surely would give you a salary slip. And obviously, the choice is yours whether to get the cheque or have the amount directly credited to your bank account. However, if the company has a strict policy of crediting to your account, they would normally not entertain a request for a cheque unless there is a genuine reason, such as problems or delays in opening a bank account.
From India, Lucknow
Acknowledge(0)Amend(0)
Hi,
Please also let me know about my attendance. Will I be getting the ID card and Bcard? My head office is in Mumbai. Before I ask them, I would like to know all these details. Other staff at the Blr office get their Attendance sheet from the Mumbai HR dept, where they mark the number of days present and absent. That's why I would like to first check with you and then contact my Mumbai office.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
Please also let me know about my attendance. Will I be getting the ID card and Bcard? My head office is in Mumbai. Before I ask them, I would like to know all these details. Other staff at the Blr office get their Attendance sheet from the Mumbai HR dept, where they mark the number of days present and absent. That's why I would like to first check with you and then contact my Mumbai office.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
Every organization has a procedure. I suggest if you have an HR department in your local branch, then contact them. They would be the right person to explain. In case you don't have any such department here, then you better contact your head office for the details of your ID, visiting, bank account, and stuff. If you had an induction program, then they would have explained to you in detail about the process.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Hema,
From what I understand from your question, you will be treated as a professional for all purposes, and accordingly, TDS will be deducted from the monthly payments made to you as your annual earnings of Rs. 2.00 lacs are crossing the threshold limit of Rs. 1.80 lacs. Secondly, being a professional, you are eligible to claim various expenses. Don't forget to file your return of income before the due date to claim the TDS deducted from the payments made to you. Lastly, I think that the Company will issue you a monthly cheque instead of crediting it to your bank account. I hope I have answered all your queries.
Joshi
From India, Mumbai
Acknowledge(0)Amend(0)
From what I understand from your question, you will be treated as a professional for all purposes, and accordingly, TDS will be deducted from the monthly payments made to you as your annual earnings of Rs. 2.00 lacs are crossing the threshold limit of Rs. 1.80 lacs. Secondly, being a professional, you are eligible to claim various expenses. Don't forget to file your return of income before the due date to claim the TDS deducted from the payments made to you. Lastly, I think that the Company will issue you a monthly cheque instead of crediting it to your bank account. I hope I have answered all your queries.
Joshi
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls