Surcharge on TDS
This query is : Resolved
Giridharan K
(Querist)
07 August 2009
Today me and my friend had difference of opinion on deduction of surcharge along with TDS.
I argued that Surcharge shall be deducted if the dudectee's income exceeds 10 lakhs or 1 crore as applicable and my caligue argued that it is on the payment made to them and it should be deducted if our payment exceeds the above said limit.
Hence my question is When surcharge shall be deducted while deducting TDS?
Kindly clarify my doubt.
I argued that Surcharge shall be deducted if the dudectee's income exceeds 10 lakhs or 1 crore as applicable and my caligue argued that it is on the payment made to them and it should be deducted if our payment exceeds the above said limit.
Hence my question is When surcharge shall be deducted while deducting TDS?
Kindly clarify my doubt.
07 August 2009
It is on Income and no way receipts are relevant. Reason is that If you follow receipts basis accounting then receipts are considard :)
Anubhav Bansal
(Expert)
07 August 2009
Mr.Somani, keeping things professionaly and nothing personally, i want to say that I felt your answer to the querry is bit ambiguous or I am not able to interpret your answer in context of the question posted. But in my opinion, please correct me if I am wrong, surcharge on TDS is deducted as per the knowledge of Giridharans colleague i.e. when the payment, which is liable for TDS, to the person exceeds the prescribed limit then surcharge should be added along with TDS rate.
Well to inform you about the relief from such ambiguity, the finance minister has proposed the amendment in the I.T.Act in this budget for the removal of surcharge and cess in the TDS rate. w.e.f 01/10/2009 TDS should be deducted at the flat rate as prescribed in the act.
Well to inform you about the relief from such ambiguity, the finance minister has proposed the amendment in the I.T.Act in this budget for the removal of surcharge and cess in the TDS rate. w.e.f 01/10/2009 TDS should be deducted at the flat rate as prescribed in the act.
Shyam Lal Naik
(Expert)
08 August 2009
Dear Mr. Giridharan,
Your friend's view is correct.
When the payment and / or credit, as the case may be, exceeds or likely to exceed Rs. 10 Lakh / 1 crore as the case may be, Surcharge was applicable.
It is not the business of the deductor to enquire, whether the deductee's income exceed a certain limit. It is not feasible either.
As rightly pointed by Mr. Bansal, Surcharge has been removed from TDS provision vide Finance (No. 2) Bill, 2009 except TDS on payment made to non residents.
The Surcharge has been removed w.e.f 01-04-09.
Your friend's view is correct.
When the payment and / or credit, as the case may be, exceeds or likely to exceed Rs. 10 Lakh / 1 crore as the case may be, Surcharge was applicable.
It is not the business of the deductor to enquire, whether the deductee's income exceed a certain limit. It is not feasible either.
As rightly pointed by Mr. Bansal, Surcharge has been removed from TDS provision vide Finance (No. 2) Bill, 2009 except TDS on payment made to non residents.
The Surcharge has been removed w.e.f 01-04-09.
Giridharan K
(Querist)
08 August 2009
Had a Claritty. Thank You Sirs.
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