TDS Query

If below from threshold limit than no need to deduct tds.

yes you have to deduct 20% tds

since if the amount is below the limit as prescribed, then there is no need of deduction of TAX from the payment.

Since there is no TDS the question of PAN available or Not available doesnot arise.

Dear Swohra,

Sainath is absolutely right. 

When the payment amt. is less than the threshold limit, then there is no liability to deduct TDS, hence there should not be any question regading rate.

But if you are still deducting tax of that person, then in my personal view, it should be 20% (to be on the safe side).

TDS chapter applicable only when the payment exceeds the threshold  limit. This clarification is in agreement with views of Mr. Pankaj, Mr. Sainath and Mr. Sunil
 

i am 61 years old person, retired from Corporation where no pension scheme apply. In F.Y. 2010-11, i have no received from my ex-employer but in Jan. 2011 arrears from last 14 years will be received and arrear amount expected Rs. 250000/-. But employer deduct TDS on arrear by 10%. Can i exempt from TDS and in this year i invest Rs. 75000/- on LIC. Please suggest can i submit Form 15G for non deducted of TDS.

Yes you can submit.

Since you are a past employee of the Corporation, the amount received towards arrears will be treated as income under the Head Salaries as per the Income Tax Act, 1961.

The rate of tax applicable to you for the financial year 2010-11 is as applicable to the other individuals ie.

Surcharge: Nil

Education cess: Levy of 2% towards ‘Education cess’ is applicable on Income tax and surcharge.

Secondary and Higher Education cess: Levy of 1% towards ‘Secondary and Higher Education cess’ is applicable on Income tax and surcharge.

Based on the inputs given by, the tax charge may be computed as below:

However, you may claim relief under section 89(1) of the Income Tax Act, 1961.

The Service provider does not quote his PA No in his invoices , but the company got a statement from the provider certifying his PA No . Section 206 AA mentions that all vouchers , invoices & correspondances should mention PA No . Now at what rate Tax has to be deducted -  20 % or 10 % (Professional) ,considering the intention behind the section of obtaining PA No is satisfied by the company.

As you have PAN, should deduct only 10% though not quoted on the Invoice. You may insist the service provider for change / revising of the Invoice. Or even you may put their PAN on the invoice, since you have the information. Nothing big deal in this.

Yes if PAN is not quoted than as per the amendment made in the finance act,2009,,tds rate is 20%

My Pan card Registration Password lossed and also  My hint answer also lossed So wat is the Solutation To Reset PassWord pls Replay........

My Pan card Registration Password lossed and also  My hint answer also lossed So wat is the Solutation To Reset PassWord pls Replay........

Please tell me the tds rate applicable for the individual providing proffesional services on  contract basis.