Tds on commission
This query is : Resolved
19 March 2012
Suppose I have a company. I want to pay commission from my company of Rs. 1 lacs to an individual, who give me a written declaration that his total income is below the exempted slab of income tax and he requesting not to deduct TDS on his commission.Can the company do so on the basis of this declaration. If so pls give me the relevant section or notification available if any.
20 March 2012
Dear Rajat.
As per Section 197A(1) and 197A(1A). If payee furnishes your any such declaration in writing to the effect that the tax on his income so computed (including commission) is NIL. NO tax deduction shall be made only if the amount payable falls under section 194 (dividend Income) and 194EE (Payments under NSS).
So in your case Deduction has to be made even if he gives you declaration because the income which you are paying falls under 194H.
Hope It is clear now.
As per Section 197A(1) and 197A(1A). If payee furnishes your any such declaration in writing to the effect that the tax on his income so computed (including commission) is NIL. NO tax deduction shall be made only if the amount payable falls under section 194 (dividend Income) and 194EE (Payments under NSS).
So in your case Deduction has to be made even if he gives you declaration because the income which you are paying falls under 194H.
Hope It is clear now.
20 March 2012
Agree with Mr. Vijay Kumar
21 March 2012
Sorry experts self declaration shall not be sufficient you have to procure a certificate from the concerned Income Tax Officer TDS that no deduction of tax be made from the person concerned who is in receipt of income below 1 lac otherwise you have to deduct tax without any excuse.
21 March 2012
Sir,
Is it below one lacs or Exemption limit??? Kindly clarify????
Is it below one lacs or Exemption limit??? Kindly clarify????
21 March 2012
That is what I meant.
Self declaration is sufficient in case of 194 and 194 EE.
In all other cases a certificate from AO for low deduction or no deduction in form 13 and moreover section 197 provides no such limit for getting the certificate.
The friend who asked the question talked about declaration received that is why I have quoted 197A(1) and 197A(1A)
Self declaration is sufficient in case of 194 and 194 EE.
In all other cases a certificate from AO for low deduction or no deduction in form 13 and moreover section 197 provides no such limit for getting the certificate.
The friend who asked the question talked about declaration received that is why I have quoted 197A(1) and 197A(1A)
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- FORM 26A APPLICABILITY
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
