If the credit or the payment in pursuance of the contract does not exceed Rs.30,000/-, no deduction has to be made at source. However , if the aggregate of all amounts paid/credited or likely to be paid/credited exceeds Rs. 75,000/- then tax at source is to be deducted.
15 January 2014
please explain why the tds is not applicable. and what is this threshold limit. because as per TDS chart there no limit of above amount
16 January 2014
Under the income tax act, for section 194C there are two limits prescribeb for any amount to be covered for the purpose of tax deduction. One is a one time payment and other is total amount during the year. One time payment limit is Rs. 30,000 , in cases where one time payment does not exceed the said limit and the total payment during the year to the same party does not exceed Rs. 75,000 then no TDS is required to be deducted.
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