Tds

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Aman Garg

Aman Garg (Querist)
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15 October 2014 Please tell me that if I have to deduct tds of someone. then how many things I have to care.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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15 October 2014 Things need to be taken care of while deducting TDS,

1.) First check whether threshold limit is crossed or not.

2.) Ask status of the deductee, as there is different rate of TDS on contract payment (i.e. in case of Individual or HUF it is 1% and in any other case it is 2%)

3.) If deductee has certificate of Lower deduction or Non deduction of tax, then get one copy of the same from deductee and keep in your records and deduct tax accordingly.

4.) In case of salary payment ask employee for any other income he has (other then salary paid/payable by you) and declaration and proofs of investment under chapter VI

5.) In case of bill received with service tax (where service tax is separately charged in the bill), make sure TDS is deducted on basic amount.

Thanks.