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TDS

Nayan (student) (93 Points)

04 September 2007

A company has paid for medical expenses of its employee. It has drawn a cheque in fever of a hospital and has debited that amount to the "Medical expenses A/c" in the books of company.

Whether tax is to be deducted or not on payment made to a hospital?

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10 Replies

MAHENDRA IYER (SERVICE) (315 Points)
Replied 04 September 2007

Payments made to a hospital for rendering medical services will attract TDS u/s 194J circular 715,dt 8/8/95

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Ritesh (Accountant) (692 Points)
Replied 04 September 2007

Payments to a hospital for medical services will attract TDS u/s 194J

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 04 September 2007

Definitely it will attract TDS

ca.Ashish goenka (profession) (92 Points)
Replied 05 September 2007

yes it will attract tds

Rohit Mehta (Business) (33 Points)
Replied 05 October 2007

IF I HAVE DISCOUNTED THE CLEAN BILL WITH PRIVATE FINANCIAR. DO I NEED TO DEDUCT THE TDS IN ANY FORM ON BILL DISCOUNTING CHARGES ?

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Nirmal1986 (articles) (149 Points)
Replied 30 October 2007

what should be the rate for the the pament made to hospital

saran kumar (student) (145 Points)
Replied 31 October 2007

u need to deduct tds @ 10%+Sc @ 10%+Cess @ 3%.........u/s194j

(Guest)

Dear Sirs, The situation referred to above, is for an employee in our company. His estimated Income Tax liability for the financial year works out to Rs.24000/- (excluding SC & cess) after considering the exemptions. In which case my query is a) whether the deduction from monthly salary for a period of 12 months should be Rs.2000/- or b) deduction Rs.2060/- (including cess 3%) per month. In case of option (a) - at the end of financial year total tax deducted will be Rs.24000/- (2000 x 12). The balance tax if any could be calculated and accordingly cess @ 3% could be added. In case of option (b) - at the end of financial year total tax deducted will be Rs.24720/- (2060 x 12) and no tax liability will be there at the end of March. My query is to whether monthly deduction and remittance to IT dept should be based on option (a) or option (b) Best Regards S. Anand

(Guest)

Dear Sirs, This is against income tax deduction for an employee in our company. His estimated Income Tax liability for the financial year works out to Rs.24000/- (excluding SC & cess) after considering the exemptions. In which case my query is a) whether the deduction from monthly salary for a period of 12 months should be Rs.2000/- or b) deduction Rs.2060/- (including cess 3%) per month. In case of option (a) - at the end of financial year total tax deducted will be Rs.24000/- (2000 x 12). The balance tax if any could be calculated and accordingly cess @ 3% could be added. In case of option (b) - at the end of financial year total tax deducted will be Rs.24720/- (2060 x 12) and no tax liability will be there at the end of March. My query is to whether monthly deduction and remittance to IT dept should be based on option (a) or option (b) Best Regards S. Anand