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Why they deducting 10% for tds on my salary?

baskar ( ) (30 Points)

29 July 2012

Hi,

I am from tamilnadu..

I am doing my freelancing job (software development) for a company in contract basics. daily 4Hrs. and monthly 6K only. But they are giving me only 5400Rs only.. 10% of 6000 were taken as TDS...

Is this correct?????

TDS for 6000 ??????

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19 Replies

(Guest)

all bills for an year put together if amounts exceed 60,000 tds must be deducted. so ur salary 72000, therefore deducted. how ever u can claim refund in the assessment year

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 29 July 2012

Yes agrred with vijay , that TDS is liable to be deducted for professional services rendered u/d 194J if payments to be made in yr. is likely to exceed Rs. 60000

yuvak (Practising CA) (144 Points)
Replied 30 July 2012

Hi,

Since you are working on a freelancing job (software development) for a company in contract basis, you are classified as a 'Professional' by the Income tax. This requires the company for whom you provide these 'Professional services' to deduct TDS/ tax from your billing/ payments @ 10% since your annual payment exceeds Rs 30,000/-.

You will be able to claim this back thru your tax return filed with Income tax department.

Cheers

Yuvak

1 Like

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 30 July 2012

TDS IS DEDUCTED BECAUSE YOUR HAVE RENDEDRED TECHNICAL SERVICE..

TDS IS TO BE DEDUCTED U/S 194 J @ 10%.

BUT AS FOR LIMIT CONCERNED:-

FOR ONE BILL EXCEEDING Rs 30000

FOR ANNUALLY EXCEEDING Rs 75000.

1 Like

Kumar-Sujeet (Sr. Accounts Officer) (282 Points)
Replied 30 July 2012

any one give me tds rules and regulation ....??/

i hv not knowing what is the limit for the tds section

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 30 July 2012

Originally posted by : CA PRAVEEN SINGH
	TDS IS DEDUCTED BECAUSE YOUR HAVE RENDEDRED TECHNICAL SERVICE.. TDS IS TO BE DEDUCTED U/S 194 J @ 10%. BUT AS FOR LIMIT CONCERNED:- FOR ONE BILL EXCEEDING Rs 30000 FOR ANNUALLY EXCEEDING Rs 75000.

Santosh V. Thakur (Sr. Accountant) (187 Points)
Replied 30 July 2012

Section 194 (J) TDS on professional/Technical charges @ 10%

Limit - 30,000/- per annum (year)- 194J -professional /Technical fees.

AND

Limit - 30,000/- per bill OR 75000/- per annum (for Contract Only- 194c)

manpreet (Chartered Accountant) (23 Points)
Replied 30 July 2012

I agree with santosh. The company is correct on its part for deducting the TDS @ 10%.u can claim refund at time of filling the return.

PAWAN M. KUKREJA (ACCOUNTANT & TAX CONSULTANT) (328 Points)
Replied 30 July 2012

yes, i agree with santosh

Shivaram Krishnan (Partner) (50 Points)
Replied 30 July 2012

you can check this thread on the TDS rates and amendments further for this Fin. Year.

/forum/tds-rate-chart-a-y-2013-14--196967.asp#.UBY4j3tmziY

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Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 30 July 2012

TDS deducted u/s 194J, not under section 192 or 194C. Although its a contractual nature, but you are providing the same in professional nature.

Hence, TDS @ 10% is deducted thereof.

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 30 July 2012

FOR 194 C:-

limit Rs 30000 per bill.

Yearly Rs 75000

for professional Rs30000 u/s 194j

(Guest)

Hi Baskar,

If you can,, change the contract basis to employment basis even if you work for part time daily basis. An employer can treat u as an employee in place of freelancer.

If they agree to treat u as an employee, then neither you no need to give an invoice nor they will deduct TDS on present amount.

Check with your employer...

Regards

Anand

Dhara (Student CS) (859 Points)
Replied 30 July 2012

Originally posted by : baskar
	Hi, I am from tamilnadu.. I am doing my freelancing job (software development) for a company in contract basics. daily 4Hrs. and monthly 6K only. But they are giving me only 5400Rs only.. 10% of 6000 were taken as TDS... Is this correct????? TDS for 6000 ??????