TDS Tax Percentage

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 Dear Experts,

One of our Consultant is requesting us to deduct 20 % tax on his payment instead of 10% (194J) we are deducting on regular basis.

Can we deduct 20 % or 30 % tax from his payment. If yes then we are required to take any declaration from him to deduct more tax. Please educate us.

Thanks,

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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22 February 2011 If he has not submitted his PAN to you then > YES... TDS should be deducted 20 %.

But..if his PAN is available with you... In my opinion you should deduct only 10 % of TDS.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 February 2011 There is no problem in deducting more tax but you should not deduct less tax.
If PAN provided rate is 10% otherwise 20%.
If we deduct more tax and deposit the same the deductee will get credit of the TDS. Act is silent on excess deduction of tax. I have seen more tax deducted and also deductee got the credit of the same.

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