Whether TDS should be deducted from HIV project Salary?

[Guest guest]

Dear forum,

If someone is Working in a NGO on Contratual basis, in its HIV/AIDS project

funded by GFATM and Getting a salary of Rs. 6000.00 p.m. only, then Is it

Justified to deduct TDS @10% from his salary.

Please reply.

Mr.Debabrat

e-mail: <mr.debabrat@...>

[Guest guest]

Dear Mr. Debarat,

 

The law is that (regardless of what program it is)- any contract where a person

gets more than Rs. 20,000/- per year for his work - TDS has to be deducted.  The

other type of contract is a salary staff contract where PF and other deductions

are made.

 

Even in all our program, community level workers earning less than Rs. 4000/-

have TDS deducted.

 

Dr. Maya Mascarenhas

MYRADA

e-mail: <mayahiv@...>

[Guest guest]

Dear Debabrat,

If a person is appointed as a consultant, then deduction of TDS is

justified. TDS deduction is made if his total fee/income exceeds Rs. 50,000 from

one source.

 

However if he is receiving a salary, then TDS does not arise as the annual

income is less than deductible limits.

 

S. Vijayakumar

e-mail: <svijaykr1954@...>

[Guest guest]

Dear forum,

/message/11762

Thank you for initiating this discussion.

I find during my consultancy I am allowed to claim travel - sometimes local taxi

or flight depending on the distance. Usually I book the tickets and I make the

claim usually as reimbursement.

My consultancy fee and the travel claim are all lumped together and TDS deducted

as a lump sum of both. I don't think this is a fair procedure to deduct TDS even

on a travel claim which is a reimbursement.

Many times we are at the mercy of people maintaining accounts of projects rather

than the project implementation heads. Any views/ comments on this?

Thank you,

Magdalene

http://centerforcounselling.blogspot.com/2009/02/write-up-on-center-for-counsell\

ings.html

--------

Magdalene Jeyarathnam

Director - Center For Counselling

2A Casa Blanca Two,

No 16 Dr Thirumoorthy Nagar Main road,

Nungambakkam, Chennai 600 034

www.centerforcounselling.org

email- magdalene@...

Office - 42080810

Mobile - 9884100135

[Guest guest]

Dear Dr. Maya,

/message/11762

Kindly consult your CA for clarificatiions.  If you are deducting TDS for cases

drawing less than Rs. 4,000 per month and that too community level workers, then

it is a great injustice to them.

Treat them as salaried staff and you need not deduct any tax and they also do

not have to run from pillar to post in filing an IT return to get a refund.  And

the amount so deducted is more than their month's salary.

Sometimes sympathy and law do not go together but it is essential e understand

the rudimentaries of taxaion while applying to staff drawing low salaries.

 

Best regards

 

S. Vijayakumar

e-mail: <svijaykr1954@...>