Regarding Tax Section 194J?

I am an Software engineer and working in one firm, my salary is 8000/- per month. My company is deducting TAX @11.33% per month. Wen asked abt it they gave me following clarification "As per deduction of tax at source (TDS) you qualify under section 194J of the income tax act.Any individual during the financial year exceeds an income of
Rs.20000p.a. shall be eligible to 11.33% deduction." Can you please help me with this and also tell me how tax is applicable for me & wat is section 194J??

Thanx

Hello Dear

Now a days all the company is hiring on contractual basis and not on their permanent roll/salary.

In your case also they are showing you on a contract employee and deducting TDS as per income tax action under section 194J.

If you tell them to take you on their payroll/salary then there will be no TDS on your salary and you will get full amount.

On regular payroll/salary you will also get other benefits like ESI, PF, Pension and thinks like this as per company policy. Insist to the company for taking you on regular payroll/salary to get out of this TDS.

Refer link http://law.incometaxindia.gov.in/DitTaxm...

also as an indivudual and if you are an employee:
If your Taxable income exceeds Rs1,10,000/- p.a. after deductions under sec 80C which is maximum upto Rs.1,00,000/- & other deductions ( you have to give declaration to your company) only then your employer should deduct tax. Taking your case - Rs.8000/- pm and if no other source of income your income is well below taxable limit.

Section 194J requires that tax be deducted at source while making any payment or at the time of credit of any sum by way of fees for professional or technical services.

Tax under section 194J is required to be deducted depending on the nature of the payee, i.e., the professional to whom the payment is to be made. However, the basic rate is 5% for all entities. From 1 June 2007, the basic rate has been increased to 10%. Further, a new secondary and higher education cess (S&HE cess) of 1% on income tax and surcharge has been made leviable