Regarding teacher appointment

AJAY SRIVASTVA (Querist) 24 April 2012 This query is : Resolved
i am working in school they are deducting pf from my salary for 12 month ,and contra to that they are getting a contract signed by us for 11 month ,and they are not deducting tds from salary,is this right

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Guest (Expert) 24 April 2012
Period of contractual employment has nothing to do with the statutory deductions like PF and TDS. So, nothing wrong in deduction of PF and income tax.

Raj Kumar Makkad (Expert) 24 April 2012
# Dhinga ji!

The querist is saying that TDS is not being deducted whereas you have wrongly understood that TDS is being deducted.

Raj Kumar Makkad (Expert) 24 April 2012
It is true that the management is free to settle your period of employment but at the same time it is mandatory for them to provide PF facility even for a single day of employment. If your income do not reach up to the minimum level of TDS, the management is not obliged to deduct it. Otherwise, it is the headache of the management to deduct it or not.

No any benefit of confirmation of service goes in your favour on the basis of PF deduction for complete 12 months or deduction of TDS. Unless management do not decide to confirm your service, you are not going to be regularised on these basis.

prabhakar singh (Expert) 24 April 2012
TDS is deducted only when your salary exceeds the exemption limit.

Deduction of PF would continue till you are in employment continuously.

Management in its' right can continue your service contract for only 11 months;there is no illegality in that because of any fact stated by you.

Guest (Expert) 24 April 2012
Makkad ji,

Thanks for pointing out the discrepancy. However, even when the amount of salary/wages becomes taxable, his employer is liable to deduct TDS also out of his salary/wages.