Is it necessary to deduct Tax at source even if one is employed for a short duration?



Is it necessary to deduct Tax at source even if one is employed for a short duration as low as one month.His salary works out to 25,000/- but was employed only for 45 days on a consultation basis.The company employed him has deducted a tax at 10 % of the total salary/compensation paid to him. The company can issue a certificate to the effect of deducting Tax. But is it correct in the situation his total salary drawn over the financial year in any case does not exceed the taxable income.

Is it necessary to deduct Tax at source even if one is employed for a short duration?
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4 Replies to “Is it necessary to deduct Tax at source even if one is employed for a short duration?”

  1. Yes you will have TDS *(tax deduction at source), even if you are on short term basis.

    fill out your income tax return forms and you will get the refund of any extra tax paid later on


  2. No deduction of tax shall be done if a payment made in form of salary is below the taxable limit & Form 16 should be issued without any tds.
    However if he was associated as consultant or in any other manner & Form 16A was issued to him than the tax deducted is justified. maximum exemption limit in this case varies around 5-10 thousands depending upon the nature of work.


  3. TDS is necessary if taxable limit is crossed.Take a declaration from the beneficiary that his income does exceed the limit alongwith his PAN no.This year IT return is not necessary for income upto Rs.5 lacs.& unnecessarily he will have to file a return for claiming the refund for which he was not supposed to pay the tax.






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