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What would be the net pay for a salary of £20,000?

Tds on contractual salary?

  • we had not deducted tds on contractual employees salary upto september 2008, becoz the salary for those employees was rs.3000/- p.m. ( i.e. rs.3000/- * 12months = rs.36000/- ) which is not crossing the limit of rs.20000/- one shot pay or rs.50000/- yearly payment. but from october their salary increased to rs.6000/- p.m. which cross the limit of rs.50000/- yearly ( rs.3000*6months = rs.18000/- + rs.6000/- * 6month = rs.36000/- total salary rs.54000/- ) so should we deduct the tds @ 2.06% from septemebr on amount of rs.6000/- only or we also deduct on previous amount i.e from april to september. please explain me.

  • Answer:

    If it is a salary, treat as salary and use method to deduct TDS on salary. For how the TDS on salary is figured out, read http://mytaxes.in/index.php?topic=12.0 If the person giving the service is a contractor (not a salaried employee), then treat as contractor. For the current TDS rates in India, and more information about TDS deduction and filing, read http://mytaxes.in/index.php?topic=8.0 Salaried employee is a salaried employee even if employed for a certain period.

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You will be liable to deduct TDS on the amounts paid the month of April to September also.. Since u have not deducted that amount earlier, you may make such deduction from the next payments.. However u may be liable to pay interest @1% which is compulsary and automatic, which would become payable after you receive the notice u/s 201

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