TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2010 Dear sir,
i am told by a CA freind of mine that the TDS rates given under the I.T Act are minimum rates and the deductor can deduct Tds at higher rate if the deductee agrees. is it so plz advice

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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20 July 2010 Income tax department will never mind if you will deposite excess TDS but if short TDS deposited then there will be problems like expenses disallowed etc. So if TDS is deducted on higher rate then there will be no problem because the deductee can take the benefit of it in his own ITR.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 July 2010 If TDS has been deducted in excess and the other party has no problem then there is no problem as per Income Tax act as it states short deduction should not be made but is silent about excess deduction. Also the other person may agree for a higher deduction so that he may not have to pay advance tax after the TDS deduction.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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20 July 2010 AGREED WITH ADITYA.

IN CASE OF SALARY DEDUCTION, EMPLOYEE TOLD THAT TDS IS DEDUCT HIGHER THAN ACTUAL TDS AS PER SALARY. BY THIS THEY HAVE NOT PAY TO ADVANCE TAX.