Rate of tds from payment to consultants above 60 years old-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2015 Sub: Rate of TDS from payment to consultants above 60 years old- A/Y 2016-17
A. What is the rate of TDS that a company has to deduct from the payment to their consultants who are Senior Citizens above 60 years of age as Consultation Fee .? (
B. The monthly payment of Consultants can vary from Rs 45000 to Rs 47000 thousand during current F/y 2015-16 – A/y 2016-17. i.e. Yearly may vary from Rs 5, 40,000 to Rs 5, 64,000
C.If there is any relief on TDS to be given to the Consultants above 60 years, kindly let me know details related to related notifications or sections under Income Tax Act?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2015 A The rate of TDS is 10% for consultants.
C No relief on TDS for consultants who are in the tax bracket.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 Dear Sreeraman

Thanks for the reply
1. Means there should be TDS @ 10% irrespective of the age of the consultant
2. In that case to for A/Y 2016-17 for a Consultant above 60 years, who draws Rs 540000 in the year and who saves of Rs 150000 U/s 80 C, the Aggregate Income Tax liability,will only be Rs 12360, whereas the company has no other option but to deduct Rs 54000/ in which Rs 41640 is the excess deduction.)
3. Does it means for the e excess deduction of Rs 41640 he has no other option, but ask for refund while submitting his personal returns
4. Does it look funny? Pl confirm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2015 1 Yes you are right.
2 Yes.
3 Yes.
4 Only for salary TDS savings and basic exemption are considered.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 Dear Seetharaman
Thanks for clear cut answers
Hope the the deaptment will consider the old man request for refund and consider him as Senior Citizen.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2015 Yes they should consider.