Tds threshold limit on diff branches basis on tan and pan
This query is : Resolved
19 January 2015
Let us take an example for the TDS limit under section 194d i.e insurance commsion Rs20000 in a F.Y.
we have taken insurance services from two different branches of SBI BANK.
SBI B1 RS 5000
SBI B2 RS 25000
NOW how should we deduct tds uder sec 194d, by consolidating the payment of different branches or only on SBI B2 amount .
kindly give reference of the ACT OR CASES for more clarity.
we have taken insurance services from two different branches of SBI BANK.
SBI B1 RS 5000
SBI B2 RS 25000
NOW how should we deduct tds uder sec 194d, by consolidating the payment of different branches or only on SBI B2 amount .
kindly give reference of the ACT OR CASES for more clarity.
19 January 2015
you have to deduct the tds due assesse is one. there is no diff. you have branch.
20 January 2015
Thanku Sir,
Please give reference of the Act/ cases/circular/notification, if any on this.
Please give reference of the Act/ cases/circular/notification, if any on this.
28 July 2025
Here’s a clear explanation for your query on **TDS threshold limit and branch-wise payments**:
---
### Question Recap:
* You paid insurance commission under **Section 194D**.
* Payments made to **two branches** of SBI:
* Branch 1: Rs. 5,000
* Branch 2: Rs. 25,000
* Should TDS be deducted on Rs. 25,000 only (branch-wise) or combined Rs. 30,000 (whole bank)?
---
### Answer:
**TDS deduction should be done by aggregating payments made to all branches of the same entity (SBI), as the deductee is the same legal entity.**
---
### Explanation and Legal Reference:
1. **Deductee is a Single Entity (Assessee):**
* All branches are part of the same legal entity (SBI) and share the same PAN and TAN.
* The Income Tax Act treats the deductee as one person/entity regardless of the number of branches.
2. **Section 194D (Insurance Commission) - TDS Threshold:**
* TDS is to be deducted when the total payment to a person exceeds the threshold (e.g., Rs. 15,000 in many cases).
* The total payments across branches are **aggregated** for the purpose of TDS deduction.
3. **TAN/PAN Basis:**
* TDS deduction and reporting are done on the basis of TAN of the deductor and PAN of the deductee.
* Since the PAN is the same for all branches of SBI, all payments to different branches should be aggregated.
---
### Circulars and Cases:
* **CBDT Circular No. 639, dated 12-12-1991:**
States that payments to different branches of the same entity should be aggregated for TDS purposes.
* **Income Tax Department Clarification:**
Deductee is a single entity; hence, payments across branches should be combined.
---
### Practical Implication:
* In your case, total Rs. 30,000 paid to SBI (branches combined).
* Since Rs. 30,000 > threshold Rs. 15,000, TDS must be deducted on the **full Rs. 30,000**.
---
---
### Question Recap:
* You paid insurance commission under **Section 194D**.
* Payments made to **two branches** of SBI:
* Branch 1: Rs. 5,000
* Branch 2: Rs. 25,000
* Should TDS be deducted on Rs. 25,000 only (branch-wise) or combined Rs. 30,000 (whole bank)?
---
### Answer:
**TDS deduction should be done by aggregating payments made to all branches of the same entity (SBI), as the deductee is the same legal entity.**
---
### Explanation and Legal Reference:
1. **Deductee is a Single Entity (Assessee):**
* All branches are part of the same legal entity (SBI) and share the same PAN and TAN.
* The Income Tax Act treats the deductee as one person/entity regardless of the number of branches.
2. **Section 194D (Insurance Commission) - TDS Threshold:**
* TDS is to be deducted when the total payment to a person exceeds the threshold (e.g., Rs. 15,000 in many cases).
* The total payments across branches are **aggregated** for the purpose of TDS deduction.
3. **TAN/PAN Basis:**
* TDS deduction and reporting are done on the basis of TAN of the deductor and PAN of the deductee.
* Since the PAN is the same for all branches of SBI, all payments to different branches should be aggregated.
---
### Circulars and Cases:
* **CBDT Circular No. 639, dated 12-12-1991:**
States that payments to different branches of the same entity should be aggregated for TDS purposes.
* **Income Tax Department Clarification:**
Deductee is a single entity; hence, payments across branches should be combined.
---
### Practical Implication:
* In your case, total Rs. 30,000 paid to SBI (branches combined).
* Since Rs. 30,000 > threshold Rs. 15,000, TDS must be deducted on the **full Rs. 30,000**.
---
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
- Section 270A penalty
- GST Registration Application -Rejected
- Transport service POS
- GSTR 9C- Table 9
- To Whom the Invoice should be Raise to
- E INVOICE, E-WAY, INVOICE
- Tax liability on gift amount given to blood relation
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- Form 104 stamp paper deed
- Whether to file ITC 03 for downward GST rate revision - Reg.
- GST- NEW Registration Issue
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
