Meaning of "cut-off amount" in tds
This query is : Resolved
Jignesh Desai
(Querist)
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
TDS is required to be deducted only if the amount of payment exceeds this "cut-off" amount.
Jignesh Desai
(Querist)
08 June 2012
Thanx a lot for the reply , Siddharth
Message likes :
1 times
08 June 2012
You are welcome. You should use the thanks button to convey your thanks.
Jignesh Desai
(Querist)
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 %)
Message likes :
1 times
CA Rakesh Goenka
(Expert)
08 June 2012
100000 * 10 % = 10000 okay...................................
Message likes :
1 times
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.
TDS = Rs. 1 lakh * 10% = Rs. 10,000
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.
TDS = Rs. 1 lakh * 10% = Rs. 10,000
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- MSME disclosure and disallowance
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
