Namita Bhade (CA) (368 Points)
04 April 2013Hi....
I want clear information regarding When Tax to be deducted at source by the deductor..??? I have many confusions in that.
What is to be considered While doing TDS..??? Is total yearly income of deductee should be considered..??
Please help to remove confusion. Thanks in advance.
Khushbu Jaiswal
(CA Finalist)
(528 Points)
Replied 04 April 2013
TDS to be deducted at the time of payment or credit whichever is earlier.
If the total yearly income is exceeding the limit specied in provision then u have to deduct TDS on whole income paid during the year.
You may refer the following link for detail knowledge.
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 04 April 2013
ya u have to consider the total income of deductee at the time of deduction,
in case of salaries(192),194b,194bb,194ee,194f,194la
it is deducted only at the time of payment,
for salries i have to say,if the deductee income is b/w 2-5lacks we have to deduct @ 10% tds and if b/w 5-10lac 20% and i hope u understood the remaining,
if u r paying under any contract i.e, under 194c the it should be deducted @ 1 or 2% as the case may be.
thank u.
Janani Subramanian
(Employed)
(151 Points)
Replied 11 June 2013
The main points regarding deduction of TDS by the deductor are as folloes:-
1. Except for TDS on salary the other payments for which tax has to be deducted is payment or credit whichever is earlier.
2. In case of 194 C [TDS on contract] 194 I [TDS on rent] 194 j [ TDS on Professional payments] TDS has to be deducted by an Individual or HUF only if his gross receipts from Business during the preceeding previous year exceeds limits as specified in Sec 44AB.
Namita Bhade
(CA)
(368 Points)
Replied 21 June 2013
CA Ramsai N
(Fresher)
(594 Points)
Replied 21 June 2013
| Originally posted by : Namita Bhade | ||
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Now I have Another Question... transportation charges if we are paying.... then what are the provisions to deduct the tax.. Section 44AB previous year provision is applied to it or compulsorily we have to deduct tax..??? |
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As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor
Still that Excemption is available(No need to dededuct the TDS)
Incase of fail to submit the PAN -TDS should deduct @ 20%
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