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Surcharge for TDS u/s 194LC

04 June 2020

Dear Friends,
How do we calculate Surcharge for TDS u/s 194LC and which account code should we select while making payment?
EX: Pls do calculate Surcharge for Rs10000

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6 Replies

gana pathi (46 Points)
Replied 04 June 2020

A Surcharge is calculated on total income tax and not on total income. Criteria for income above Rs. 1 crore is only to check the applicability of Surcharge. Also, note that if a surcharge is applicable then education cess will be calculated on the total amount of income tax plus surcharge

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Mohanraj J (1166 Points)
Replied 04 June 2020

Dear Ganapathi, Actual amount payable u/s 194LC is maximum 10 lakh for 6 months and 20 Lakhs to be paid per year.

hassan waghu (Employment) (65 Points)
Replied 05 June 2020

Since interest payable to non resident (beneficiary) party is less than 1 cr during the year. Surcharge is not applicable.

Need to deduct tax at the rate of 5% under section 194LC plus education cess at the rate of 4% on the above tax of 5%

So effective rate comes to 5.2%. (5% + (4% of 5)).

Whole 5.2% needs to paid under 194LC.

Hope above clarifies.

In case of any query you can revert.

Thanks..

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Mohanraj J (1166 Points)
Replied 05 June 2020

Dear Hassan, Thank u so much for your kind assistance. I need two more clarifications.
1. We need to mention SC payment in SC column During online TDS Payment ?
2. Last month I paid twice for 194C same amount. 7671 + 7671. This month I need to pay 8333 for same section. So, shall we adjust last month excess paid 7671 this month? and how do we show CIN for particular vendors?

hassan waghu (Employment) (65 Points)
Replied 05 June 2020

Mohonaraj,

Surcharge is not applicable. Since amount is less than 1 cr.

But, Yes.. u need to mentioned cess separately while making TDS payment.

Last month excess paid can be adjusted against this month.

Need to show following 2 TDS challan for 8333 at the time of filing TDS return. For your info. mutliple challans can be shown at the time of filing TDS return for single payment.

1) Rs. 7671 (excess paid last month)
2) 662 (balancing amount to be paid)

Hope above clarifies.

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Mohanraj J (1166 Points)
Replied 05 June 2020

Thank u very much Mr Hasan hi

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