Hello friends,
Hi...I have some doubts regarding TDS.
When any payment is made to the contractor which exceeds Rs. 20000/-, we deduct TDS but if next payment doesnt exceed Rs. 20000/- and also the total payments or credit made during the year doesnt exceed Rs. 50000/-. Is payer liable to deduct TDS on the subsequent payments made after the first payment of Rs. 20000/- ?
NO not required to deduct TDS.
As per provisions if any payment exceeds Rs.20000/- per bill or Rs.50000/- per annum, then you have to deduct TDS.
In other words if ypour first paymnet exceeds Rs.20000/- and you deducted TDS.
If subsequent payment is Rs.10000/- then you dont need to deduct TDS.
This will continue till your total payment exceed Rs.50000/-. The day when total payment exceeds Rs.50000/-. Then you have to deduct TDS on all previous amounts also.
Simple illa?
the best way it to be safe by deducting tax.
Let the person to whom you are deducting tax ask for it.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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