Rajkumar Gutti 13 October 2023

Tds under contract ,income tax section 194c

I was working in Pvt Ltd. company as a Assistant Manager ( Internal Audit ). At the age of 58 years completed I am retired from

this company. Now this said company give me employment as a contractual basis. I am simply B.Com. not a chartered Account,

not a lawyer, Engineer, Doctor not having any professional qualification.

The said company deduct 10% TDS as a Professional charges. But my intention is I am not having any profession qualification

My present employment is pure contractual basis & not having any professional skills. Hence deducting 1% TDS as a TDS on contract is right under Income tax section 194c.

You are requested please give me any legal citation , that is TDS 194c is right to deduct tds from contractual employment other than

professional person. To deduct 10% TDS as a profession charges under income tax section 194J is unjust to me & take home salary

is very less.

You are requested to give me guidance in this regard

Rajkumar Gutti

Reply Follow

1 Replies

P. Venu (Advocate) 13 October 2023

The facts posted suggest that your designation as consultant is a sham arrangement. However, it would be counter-productive to adopt an agressive stand on the issue. The issue of TDS, in my understanding. could be taken care of while filing IT return. Perhaps, an Iax practioner could be better placed to assist you.

As to the issue of sham consutancy you may post the query at citehr.com for more informed opinion/suggestion.