TDS Deduction - Tds Deductions [Thread 126238]

Dear Seniors,
I've been appointed in a company on fixed tenure contract for 2 years and my package is 2 lacs 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

Hema,
You will not have any TDS. As per the new IT slab for the financial year 2008-2009 upto 1.8L per annum there would not be any IT deductions for female employees. If u produce receipt for HRA(House Rent Allowance) then it would be considered as reimbursement. So u would fall below 1.8L slab.

Hi Prathima,
Thanks 4 ur suggestion, the IT slabs which you mentioned is for the female employees, who is on a permanent roll, what about me, I'm directly appointed thru the company but on fixed contract tenure for 2 years, will i also be having the same slabs. kindly clear my doubts, Pls don't mistake me.
Thanks,
Hema

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.

Hi Hema,
Does not matter whether it is for fixed term employment or permanent employment. TDS liability depends upon whether it is Consulting engagement (to qualify for 10% TDS) or in the nature of employer-employee relationship.
In your case, prima-facie it look like it is employer-employee relationship so TDS shall be deducted u/s 192 of income tax act
Regarding HRA deduction suggested by another group member, that will be allowed only if your compensation and allowance break-up from company has HRA element in it.
Besides, there are other exempt / FBT allowances also which will lower your burden of TDS. So final calculation will depend upon the structure of compensation you are getting. Given the structure is planned wisely, 2 lakhs CTC p.a. should not attract a single penny TDS.
Regards,
CA Rajat Mehta

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

Hi Thanks a lot,
I've a question, Will my salary be credited to the corporate account or will i be paid by cheque, and also will they give me a payslip. kindly clarify this. co is doing very good in mumbai, and has business all over india.
regards,
hema

Hi,
If it is employer-employee relationship, they surely would give you salary slip
And obviously choice is yours whether to get the cheque or direct credit in your bank account.
However, if company has strict policy of crediting to your account, they would normally not entertain request for cheque (unless for genuine reason e.g. problems and delays in opening bank account)

Hi,
Pls also let me know how 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 staffs at Blr office, get their Attendance sheet from Mum hr dept, where they mark the nos of days present and absent, that's why i would like to first check with you and then contact my Mumbai office.
Thanks

Every organization has a procedure. I suggest if u have a HR department in ur local branch then contact them. They would be the right person to explain. Incase u dont have any such department here then u better contact ur head office for the details of ur Id / Visiting / bank a/c and stuff. If you had an induction program then they would have explained you in detail about the process.