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TDS ON LABOUR EXP

dabhi rameshbhai dayabhai (accountant) (68 Points)

04 June 2018

what is limit for tds in year of labour exp & cash payment limit one person in year?

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Siddharth Goel (Chartered Accountant) (3031 Points)
Replied 05 June 2018

Hi,

For Labour expense, TDS @ 1% (individual) and TDS @ 2% (other than individual) shall be deducted as per Section 194C, if the single payment exceeds Rs. 30,000 and aggregate payment exceeds Rs. 1,00,000 in the financial year.

Provisions of Section 40A(3) of the Incoem Tax Act, provides that any expenditure in respect of which payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds ten thousand rupees, shall not be allowed as a deduction.