08 June 2012
I was just going through the TDS Chart for the Financial Year 12-13 in which there is a column called "Cut Off Amount " . Can anyone please explain what exactly is the meaning of this "Cut Off Amount" ?
08 June 2012
So , say , suppose a person receives Rs. 1,00,000 as Interest on Fixed Deposit from Banks in a perticular year & the cut - off is Rs. 10,000/- . How much TDS will be deducted ? (The rate of TDS on Interest from Banks is 10 %)
08 June 2012
Please understand that the cut-off limit is for applicability or otherwise of TDS provisions.
If the payment during the year exceeds the cut-off limit, TDS will be deducted on the TOTAL PAYMENT and not on the amount in excess of the cut-off limit.
So, in this case, since the interest amount exceeds Rs. 10,000, TDS provisions are applicable.
Accordingly, TDS will be deducted on the TOTAL interest of Rs. 1 lakh.
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