TDS

This query is : Resolved

CS Akansha Gambhir (Querist)
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20 May 2011 Hi all,

Plz help me out with the following :

(i) When threshold limit is crossed u/s 194J due to multiple bills in a year aggregating more than Rs. 30,000/-, TDS is to be deducted on amount exceeding Rs. 30,000/- or on whole amount paid as Professional Fee during the year?

As per me it shall be deducted on the whole amount but I am in need of documentary evidence for the same. Kindly refer any book, article, journal, etc where it is specifically written.

(ii) In one of the cases interest on TDS u/s 194J is computed as Rs. 33/- but party deposited Rs. 110/-

& in the case of same party interest on TDS u/s 194I is computed as Rs. 267/- but party deposited Rs. 165/-.

Can the excess interest paid u/s 194J be adjusted with interest u/s 194I?

U S Sharma

U S Sharma (Expert)
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20 May 2011 (i) once the threshold limit is exeeded i.e 30000 in your case, TDS is to be deducted on whole amount, read the rules from incometax site.

(ii) both sections are distinguished and can not be adjusted,

CA Amit Agrawal

CA Amit Agrawal (Expert)
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20 May 2011 (1) As per the sec 194J you have to deduct TDS on aggregate amount paid or credited during the year which can be interpreted as including those on which you have not deducted tax earlier due to threshold limit and now from future transaction and payments you have to deduct TDS @ 10%.
(2) Intra section Interest on TDS can not be adjusted.

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CS Akansha Gambhir

CS Akansha Gambhir (Querist)
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23 May 2011 Thanks a lot for your help.