Section 194J - are we eligible to get the refund

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Laxman (Querist)
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16 May 2011 Hi

My wife is working with a cooperate company as a contrator and they are deducting the tax under section 194J in every month. Her total income is less than Rs. 2.5 Lacs for the financial year 2010-2011. But the company has deducted total tax of Rs24,500. But as per the ladies income they not liable to TDS upto 1.9 lacs. If the total income is 2.5L then she should pay the TDS for remaining 60K. Can we claim the tax refund from Govt of India after getting form 16A from the company? Is she eligible to get back the amount?

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Some one replied as

she is under contract with company, not an employee, the calculation of threshold limit works only for employee, not for contract

yes she is entitled to get refund of excess TDS, on filing ITR by self.

My question is

if we deduct Rs 1,90,000 ( No Tax for ladies) and so the remaining income is Rs. 60,000. she has to pay tax of Rs. 6000, is it right that she will get a refund of Rs. 24500 - Rs. 6000 = Rs. 18500

Thanks
Laxman Kumar

CA CS CMA Srinivasan N

CA CS CMA Srinivasan N (Expert)
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16 May 2011 Dear Laxman,

As far as the income from consultancy is concerned it comes under the Head "Profits and gains from Business/profession". As per the Act, further deductions from income are eligible for any direct expenses in earning the income like conveyance etc. In addition to this she can also claim any deductions under sec.80 towards insurance/Mutual fund contributions etc. if in her name.
Ultimately the net income is taxed over and above the basic limit of 190,000.
The net tax would be much lower considering above and she can file the return with a claim of refund for excess TDS.
Also you can check the updation of TDS in tax dept website at this link to ensure that the whole of TDS has been correctly updated in her PAN Number. If not the refund will get delayed.
Link : https://www.tin-nsdl.com/panregistration_viewtax.asp
Hope it clarifies.
Contact me for any further details.

Rgds
Srinivasan
+919789970880

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