What is the TDS exemption limit for professional fees?
What is the limit to deduct TDS under Section 194J ? TDS is required to be deducted under Section 194J if the payment towards professional or technical services covered under this section exceeds Rs 30,000 per annum.15-Aug-2022
30,000 is the maximum limit which is applicable to each item or payment independently. TDS under this section is also applicable on commission or remuneration or fees given to a company's director, even though the amount is not a part of the main salary. In these cases, the Rs. 30,000 limit is not applicable.
How is TDS on professional services calculated?
From 1st June 2017 TDS is to be deducted at the rate of 2% where the payee is engaged only in the business of operation of a call centre. Tax is to be deducted at the time of credit of such income to the account of the payee or at the time of payment whichever is earlier.
Section 194J stated that any person who is paying fees to any resident person for specified services, then TDS is required to be deducted u/s 194J. However,TDS is to be deducted when amount of payment in a year exceeds Rs. 30,000/- at the rate of 10%.03-Aug-2022
What is difference between 194J & 194jb?
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.23-Nov-2021
What will be amount of disallowance? Answer:– No tax deducted and paid on Rs 1,00,000. So Amount of disallowance will be Rs 30,000/- (30% of Rs 1,00,000/-) and if it is paid after due date then Rs 30,000/- will be allowed as deduction in next year.24-Mar-2020
What is the difference between 194C and 194J?
Answer : Routine, normal maintenance contracts which includes supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source.
TDS Rate Charts for the FY 2022-23
What is TDS limit?
Q- What is the limit to deduct TDS u/s 194 C? The threshold for deduction of the TDS under section 194C is Rs. 1,00,000/- for aggregate payment of the whole Financial Year and Rs 30,000/- for the single payment.29-Mar-2022
Legal and other professional fees are not specifically mentioned in the Code as deductible items. Therefore, a taxpayer is able to deduct these types of fees only if they qualify as “ordinary and necessary” expenses under §162 (business expenses) or §212 (expenses related to the production of income).
What are professional services under 194J?
Who is Liable to Deduct TDS Under Section 194J?
Section 194J TDS of the Income Tax Act of 1961 contains rules for deducting TDS on payments for scientific and skilled services.
What is included in technical services under 194J?
“Fees for technical services” means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like 12-Jun-2020
Yes, the deduction for TDS on salary is mandatory under Section 192 of the Income Tax Act. Every employer who pays a salaried income to his employees needs to deduct TDS on salary if the income amount is over the basic exemption limit.
Who is liable if TDS is not deducted?
Section 191 provides that the liability of a salaried person to make direct payment of the tax arises if no tax has not been deducted from his salary.07-Dec-2021
You just need to visit the income tax portal and login to download the relevant form for an income tax refund. Enter all the particulars and submit the form. If the employer has deducted tax when you are not eligible for it, you can claim the amount by filing income tax returns (ITR).
Is TDS applicable on job work after GST?
If the total contract value is more than Rs. 2.5 lakhs, then GST TDS would be applicable, irrespective of value of individual tax invoices. Finally, GST would be applicable only if the supplier and the place of supply are in the same State or Union Territory.
Various sections relating to TDS particularly those payments which are subjected to levy of service tax like S. 194C, 194D, 194E,194G, 194H,,194I, 194J, 195 etc. Article by author No TDS on government levies like service tax , VAT, Municipal tax.
What is the TDS rate 2022 23?
TDS Rate Chart for FY 2022-23
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
What is the TDS rate for 2021 22?
Whereas, in case of Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @ 5%. - The TDS at the rate of 31.20% and 41.60%is applicable on Non-resident Indians and foreign company respectively.
What is the TDS exemption limit for professional fees?