U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 30 April 2011
| Originally posted by : EXCELLENCE | ||
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SUPPOSE THE PERSON HAS NOT TAKEN COP & WORKING IN A CA FIRM WHETHER TDS REQD TO BE DEDUCTED IF GROSS SALARY=240000 & MY LIC & OTHER TAX SAVINGS ARE 80000 THEN MY NTI =160000 . |
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what is COP?
the payment is due in term "salary" where the employer and employee relations exist and 80000 is invested in 80C insturmentsfrom current year income, then no TDS applicable on remaining 160000.
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 30 April 2011
| Originally posted by : EXCELLENCE | ||
|
|
SUPPOSE THE PERSON HAS NOT TAKEN COP & WORKING IN A CA FIRM WHETHER TDS REQD TO BE DEDUCTED IF GROSS SALARY=240000 & MY LIC & OTHER TAX SAVINGS ARE 80000 THEN MY NTI =160000 . |
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In my opinion,
As per Clause (a) of Explanation of sec. 194J of Income Tax Act “PROFESSIONAL SERVICES” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section.
If any payment made regards professional fees during the year which is single or aggregate exceeding Rs. 30000 (previously it was RS. 20000) shall be liable to deduct tds u/s 194j for AY 2011-12 @ 10%.
srinivasan
(service)
(898 Points)
Replied 30 April 2011
I agree wit Mr. sharma. If there exists an employer employee relationship between the two persons only sec. 192 will apply irrespective of the person employed is a qualified person and his profession falls under the notified profession u/s 44AA.
The amount paid to the person will fall under the category of salary and TDS is deductable u/s 192 and not as professional fee u/s 194J. (If somebody thinks otherwise, all the professions who are working under employment will be subjected to TDS u/s 194J and not u/s 192)
One more point that has to consider here is the availability of PAN of the employee. If the employee does not have a valid pan the net taxable income would fall under the purview of 206AA and TDS has to be effected @ 20%.
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