Plz help regarding TDS under 194c for individual

Mihir (Wealth Manager) (5293 Points)
Replied 12 August 2011

u/s 194C TDS deduction is 2% in the case of company deductee and 1% in case of individual deductee, so your TDs deduction is correct.

Since your annual income is going to be more than75,000/- aggregate, they will deduct 1% on all your receipts.

Collect your TDS certificate 16A which is now quarterly (april-June in July etc). Check your AS26 on incometaxeifling.gov.in website, and accordingly calculate your tax liablity.

You can file ITR 4.

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 12 August 2011

section 194C states that if the amount exceeds75,000 in a FY, then TDS is to be deducted on whole amount rather than the on amount exceeding75,000.

so, in ur case, TDS is to be deducted on1,00,000(assuming it on gross basis).

if further25,000 are billed, den agn TDS is deducted on25,000.

and TDS has nothng to do wid filing of ITR

ITR depends upon your nautre of income......

plz corect me if m wrng

valji (Accounts manager-MBA) (2150 Points)
Replied 12 August 2011

agree with mihir

Nisarg Desai (Article Assistant) (53 Points)
Replied 12 August 2011

Agreed with Mr. Mihir

TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
Replied 12 August 2011

Dear All,

I am not agree with Mihir. I just want to change Form 16A instead of Form 16,

Regards

TRILOCHAN

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6881 Points)
Replied 12 August 2011

Agree with Mihir

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 13 August 2011

Thankyou all for the response. So the TDS will be 1% but the income will add to my regular income like a salary and which ever slab i fall after total income, i will pay Itax accordingly, correct? So now a new confusion arises, since this income that i have is a kind of salary, why is just 1% deducted, if i were a part of a company as a salaried employess, my TDS would have been according to my slab on yearly assumed income.

Also since in 194c contract income there is no assumed yearly income and TDS is done on pro-rate basis of 1% PM, I can safely assume that on yearly basis my total TDS would be 12% (for 12 months) on total income, plz correct me if i am wroong.

Althaf (Senior) (21 Points)
Replied 14 August 2011

As per sec 15 of the income tax Act income should be taxed under the head salary only if the employer employee relation exist. In this case you are geting the income on contract basis, it will not be taxed U/h salary. Appropriate head is "Income from Other Sources".

As per 194C TDS is 1% for a non corporate assessee. your total TDS for the F.Y would be 300,000*1%=3000

shrinivas (Audit trainee) (21 Points)
Replied 14 August 2011

It will not be taxed under the head salaries as there is no employer employee relatrionship. Since you are an independent contractor and doing it from your home and moreover if u r gng to incur certain expenses against your income. In such case it will be taxed under Business income. so u have to file ITR 4.

Rajesh Mange (Proprietor) (29 Points)
Replied 14 August 2011

I agree with Mr.Mihir

Jayalakshmi (xxxx) (27 Points)
Replied 15 August 2011

For Individual Contractor , TDS is applicable @ 1% if the recepient is individual , where the individual payment amount exceeds Rs.30000 /- and aggregate payment to single contractor in the financial year exceeds Rs.75000/-

For example, where single payment is Rs.35000/- then tds will be 35000*1% ie.,Rs.350/- Similarly where aggregate payment in a year is say Rs.80000/- then tds will be 80000*1% ie., Rs.800/-

Since it is individual's own business , the total income received will be treated as business income and expenditure if any could be claimed and tds could be claimed as per tds certificate received.

Jayalakshmi ACA., Grad CWA.

satish kumar Chauhan (accountant) (347 Points)
Replied 15 August 2011

Igrid with mihir

CA Saiyum khan (Practicing CA) (690 Points)
Replied 15 August 2011

The appropriate head is Income from Business and Profession. You have to prepare P & L Account where as admissible expenses would be deducted from your profit and you will be liable to pay tax on your net profit. Net profit will be taxed according to the slab for individual. From the total tax liability as per computation you will get the credit of TDS and balance amount has to be paid or claimed refund as the case may be. You have to file ITR 4.

Deepak Singh Rawat (Article Assistant) (53 Points)
Replied 15 August 2011

May I know what type of assigment you are doing for a company

I mean to say that if you have professional skill & knowledge(like doctor, lawyer,etc) about these assigments then your are providing services rather than contractual basis work.
& your TDS is 10.3%

If not, then all the above suggestions are agreeable.