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TDS Question

Martin King (Director) (81 Points)

30 March 2011

So I am a beginner in business. Have my small business of placement consultancy in Delhi, India.

Below are some questions which I want to ask from the experts.

I had sent an invoice of Rs44,000 of 4 items to my client as a professional fees. He deducted 10% TDS from the same as per the Govt Policy.

I suppose any invoice amount which is above Rs30,000 is liable to pay 10% TDS.

But what if I send 4 different invoices for 4 different items( Less than Rs30,000 each ). Will I still have to pay the TDS ?

Can TDS be refunded ? How?

If my annual Income is Rs5Lakh ( without deducting the expenses ), how much Income Tax am I liable to pay ?

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4 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 30 March 2011

Originally posted by : sarvesh
	So I am a beginner in business. Have my small business of placement consultancy in Delhi, India. Below are some questions which I want to ask from the experts. I had sent an invoice of Rs44,000 of 4 items to my client as a professional fees. He deducted 10% TDS from the same as per the Govt Policy. I suppose any invoice amount which is above Rs30,000 is liable to pay 10% TDS. But what if I send 4 different invoices for 4 different items( Less than Rs30,000 each ). Will I still have to pay the TDS ? Can TDS be refunded ? How? If my annual Income is Rs5Lakh ( without deducting the expenses ), how much Income Tax am I liable to pay ?

TDS is deducted on whole transaction per year basis with any person ( per pan)

you have to set off your tax liability with TDS so deducted.

you have to calculate your net income after all expenditures then proceed for tax payment.

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Puneet Mittal (Sr. Officer Accounts) (210 Points)
Replied 31 March 2011

Hi Sarvesh,

Yes As per Section 194 J If you are providing any Professional Service to any client of Rs 30000 or more in a year than Party will be deduct the TDS @ 10% on the amount of Invoice.

If you send Separate invoice for each Service but aggregate amount is more than Rs 30000 than Party will be deducts the TDs on each invoice.

Tax will be calculated as per your Status. If your annual income is 5Lacs, you are individual Than you have to pay tax @ 10.3% on the amount of Income after Expenses and if party has deducted TDS more than your tax amount you can claim your refund after the filing of Income tax return.

Regards

Puneet Mittal

kunal singh (gf) (24 Points)
Replied 11 July 2011

RECENTLY I HAD INVESTED IN FIXED DEPOSITS.THE INTEREST THAT I WILL RECIEVE WILL CROSS RS.10000 MARK.WILL I BE CHARGED UNDER TDS.I AM STUDENT WITH NIL INCOME.PLEASE HELP.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 11 July 2011

Originally posted by : kunal singh
	RECENTLY I HAD INVESTED IN FIXED DEPOSITS.THE INTEREST THAT I WILL RECIEVE WILL CROSS 10000 MARK.WILL I BE CHARGED UNDER TDS.I AM STUDENT WITH NIL INCOME.PLEASE HELP.

visit the bank and submit form 15G, they wil not deduct TDS,

however in future you have to submit 15G at start of year ( april every year) and take care to deposit in diff branchs to avoid TDS