Salary paid in two payments to avoid tds

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  1. Priyahari

    Priyahari New Member

    I have a small company with less than ten employees. Lately, they have been asking me to pay them in two transactions, such that their payslip will show an income less than taxable slab. Rest of their salary to be paid as allowances like shift allowance etc, which is to be transactioned at a later date. They want to avoid TDS. Is this possible? Can experts please advise. I really appreciate your valuable inputs and expert insights. Thanks for your time.
     
  2. whatever you are paying them under employment will come under salary.

    any allowances are also part of the salary.

    so they can't avoid TDS if total sum per annum more than taxable slabs.

    better to ask them to make tax savings or furnish if any have already for an amount in excess of the taxable slab. then only TDS will not attract.

    for more refer
    http://www.charteredclub.com/tax-on-salary/
     
    Karan Batra likes this.
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