Tds deduction

Querist : Anonymous (Querist) 05 January 2012 This query is : Resolved
Hello,

I'm working in a company on contractual basis from 31st March 2011 and my contract got over on 31st Dec 2011 and now the company has taken me on company's payroll from dated 2nd jan 2012.

Now my question is how can company deduct my TDS by there own as i got on company's payroll from 2nd Jan 2012. or Is Company liable to deduct my TDS as my monthly income is 8500 pm., If Yes, than what will be the amount which will be deducted.

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Deepak Nair (Expert) 05 January 2012
Your salary is Rs.8500/- per month, does not come under taxable income. Therefore, your employee cannot deduct TDS from your salary. You are liable to pay tax only if your total yearly income is Rs.1,90,000/- or more.
Thus, speak to your employer and do the needful.

Sankaranarayanan (Expert) 05 January 2012
Yes mr nair given good expanation more over up to dec2011 u r liable for contract. So ur principal might have detected 2% and cess 3% once u r being employee of the company and if ur salary exceeding 190000 thousand then the employer is liable to detect TDS as per IT act