23 February 2011
I Have a situationregarding tax Deduction as follows. One Party pays Professional Charges on the following dates on 30-04-2010 - 15000 on 30-09-2010 - 5000 On 31-12-2010 - 25000.
is there any liability deduct tax on the 1st & 2nd Payments? Or is it enough to deduct tax on the entire amount from 3rd Payment without interest?
23 February 2011
If payment to professional during the financial year exceeds 30000/-, 194J would be applicable.
There is no need to deduct Tax on 1st and 2nd payment as at that time payment did not cross Rs. 30000/-. In last payment, it crosses 30000/-. In this case you are required to deduct tax from the last payment on the aggregate amount paid in the financial year. It means you have to deduct tax on Rs.45000/-.
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