Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Tds on profit %

jinal mehta (Asso accounts manager) (212 Points)

07 April 2016

Dear Experts, If some person withdrawing % of profits and he is already into 20% tax slabs and if dont wanna pay TDS on accrual basis as amount is to be payable in the month of October once profits gets final, is there any way out to save this amount ??

Reply
Follow
Share

4 Replies

(Guest)

Are you paying commission as % of profits?

Upgrade to CAclubindia Pro. Subscribe Now!

jinal mehta (Asso accounts manager) (212 Points)
Replied 07 April 2016

It is not commission, but to retain the person we are paying him profit %, it is not a commision but sharing in profit as a part of remuneration

(Guest)

1) If the person is a partner, there there is no TDs on remuneration.

2) If ther person is an employee, the TDs on salary has to be deducted when the salary is actually paid to him. So if he is withdrawing now, you have to deduct TDS.

jinal mehta (Asso accounts manager) (212 Points)
Replied 07 April 2016

he is an employee and so at the time of paymet which would be october, 2016 in present case, But anything or way out that the same amount i disburse via some different source, so i or employee(Director) do not have to pay tax on the amount.

If you are having any menas please let me know please.