TDS on payment

This query is : Resolved

ramji (Querist)
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01 July 2010 I am getting Rs. 4,000/- pm for maintaining a Clubs database and its accounts since April 2008. Of which I spend nearly Rs. 2,000 towards conveyance. Now I have decided to request the Club enhance the payment to Rs. 7,500/- p.m.with effect from 1st July 2010. Will it be treated as professional charges? I am a pensioner and I am filing Income Tax returns regularly. Does this amount attract TDS? And what is the rate of TDS? Shall I claim my conveyance separately i.e Rs. 3,500 p.m. and get exemption from Income Tax to this amount Rs. 3,500/- because I am actully spending this amount.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 July 2010 yes. it will attract TDS and conveyance reimbursment make separate invoice then No tds for conveyance ,TDS attaract Sec.194J

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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01 July 2010 Agreed with expert. Such income will be covered under section 194J. Club will deduct tds. You have to issue debit note for conveyance reimubursement sepratetly, otherwise in case of consolidated bill, tds will be deduct on full amt.

You can claim expenses of conveyance agaisnt his professinal income .

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