Originally posted by : Dev K Sharma |
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Dear Sir/ Friends ,
I m bit confused kindly clarify my confusion.... i m decucting TDS @ 10% on Commission under Sec 94H.. 406000/- (TDS40600/-)
I m paying same person salary @ 20000/- per month,
Is TDS also required to deduct on Salary also becoz after computaion the TDS deducted on 94H is refundable, is tds required to deduct of salary also...
Kindly Help,,
Dev k Sharma |
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In my opinion.......!!!!!!!!!!!!!
As per sec 194H only person other than individual and HUF required to deduct TDS @ 10% on commission (not being insurance commission referred to in section 194D) or brokerage.
you have to deduct TDS on salary only as if you read Sec 192 then .........you will find that Any person responsible for paying any income chargeable under the head “Salaries” shall be required to deduct TDS on the amount payable at the average rate of income-tax Computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
Therefore the liability to deduct TDS in case of salary is on all persons, whether individual, HUF, Firm or a company irrespective of the fact whether the person in carring on business or not.
Therefore you will have to deduct TDS as follows
i.e. tax on240000(20000*12) =8000.
average of tax i.e. 8000/12= 666.67/month.
Thus, TDS to be deducted every month by you will be666.67
Let other Member Explain.....!!!!!!!!!!!!!!