20 October 2009
Sir, I am having a doubt on the method of calculation of tax deductible under sec 194B and 194BB.. in one of the books that i read, it is given that the tax is calculated at the specified rates on the amount recieved less the exemption amount under the section (ie Rs.5000 and Rs.2500 resply).is this the correct method to be followed or is it that the tax is to be calculated on the gross amount recieved??
and if it is on the net amount.. then is the exemption amount to be deducted on every reciept of such income for the pupose of calculating the tax on it??
20 October 2009
Dear Ninu, The amount of 5000 and 2500 is striking point i.e. if payment exceeds such an amount you have to deduct TDS on the whole amount. I strongly recommemnd you not to go for any writer. Go for eminent like Singhania, Manoharan, Girish Ahuja
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