Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 DEAR MEMBER(S)
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AN INDIVIDUAL PROVIDE THE SERVICE OF ARTICAL TO NEWS PAPERS. DOES IT CREATE TDS LIBILITY IF YES .UNDER WHICH SECTION TDS IS TO BE DEDUCTED.& WHAT ARE THE LIMIT FOR THE SAME

@VaibhavJ

@VaibhavJ (Expert)
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27 December 2013 Hi

TDS applicable u/s 192B

Thanks

Ganeshbabu K

Ganeshbabu K (Expert)
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27 December 2013 I understood that individual is contributing articles to news papers
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As he is not your employer you should deduct TDS if total payments in year exceeds 30000.applicable tds u/s 194J.

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@VaibhavJ

@VaibhavJ (Expert)
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27 December 2013 Ok, i understood that he is working as article clerk as Mgmt Tainee.

Ganeshbabu K

Ganeshbabu K (Expert)
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27 December 2013 in such case in my opinion no tds required to be deducted as amount paid to trainee/articleship is exempt income

Refer Sec.10(16)

@VaibhavJ

@VaibhavJ (Expert)
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27 December 2013 It will be exempt only if paid as per ICAI norms, any amount paid over & above then it will be taxable.

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Thanks ......................

The limit of 30000 is for each payament. or aggregate payment u/s 94J.

Ganeshbabu K

Ganeshbabu K (Expert)
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27 December 2013 any amount paid to trainee as a stipend will not taxable as income in the hands of receipient. if it is as per sec.10(16)
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Suppose i am getting stipend of 8000 rupees but as per icai it is fixed at 1500 difference per month is 6500 which will exceeds 30000 in a year,..even in such case it is not chargeable to tax and my principal not required to deduct tax from my stipend.
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because total amount paid is stipend nature and qualifies for Sec.10(16) exemption

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