TDS

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CA Suresh kumar panda (Querist)
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18 June 2011 If my contract of rent is for Rs2 lakhs, entered in september 1st. for the 7 months(i.e sept to Mar) since it does not exceed 1.8 lakhs should not we deduct TDS?

Pls consider.....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 June 2011 No. Since it does not cross the threshold limit TDS deduction is not required.

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CA Suresh kumar panda

CA Suresh kumar panda (Querist)
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18 June 2011 But sir there is a provision that if we anticipate it ll exceed we can deduct TDS....is is not it???

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 June 2011 TDS deduction should start once threshold limit is crossed. But even if you have deducted the TDS no problem the party will get the credit.

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CA Suresh kumar panda

CA Suresh kumar panda (Querist)
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18 June 2011 Thank you sir...i got my point.In 194I its clearly given if it exceeds 1.8lakhs in the FY only TDS ll be deducted.....

Thank u very much for answering...:-)