TDS on Salary

[Reshma kochar]

Hello Members,

What to do in a case where one of our new employee is going onsite for a long period on US payroll, as will be considered a non resident then. Right now he gets only one month salary in India, our payroll team is confused about TDS provision about his one month salary? Should be this on one month salary ( non tds as its less than tax slab) or on annual estimated salry ?

[T Ravi Chand]

As that is the total salary paid in India for the whole year, no need to deduct the tax



[Reshma kochar]

Hi, Ravi,

In our view, while deducting TDS u/s 192, would it be feasible to consider any upcoming future event which is not so determined ? More likely it would be saferside to deduct TDS on the basis of his annual salary based on his current one month salary, to aviod any further discripancies with TDS rules.

Until he is on company's payroll, we should treat him as a regular employee and follow the TDS rules.

AI Summary

Debate on TDS Deduction for Non-Resident Employee: Monthly Salary vs. Annual Estimate. A discussion on a forum addresses the issue of TDS (Tax Deducted at Source) on the salary of an employee who is going to work in the US and will be considered a non-resident. The payroll team is unsure whether to deduct TDS on the employee's one-month salary in India or on an annual estimated salary. One participant suggests no tax deduction is needed as the salary paid in India is below the tax slab. Another participant advises deducting TDS based on the annual salary to avoid discrepancies, treating the employee as a regular employee under TDS rules.