Tds u/s 194c

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This query is : Resolved

Deven (Querist)

15 January 2014 we have hired an housekeeper for our company. and paying Rs. 6000/- pm. are we liable to deduct TDS u/s 491c

CA Kapil Verma

CA Kapil Verma (Expert)

15 January 2014 No need to deduct TDS.

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.

Deven

Deven (Querist)

15 January 2014 dear Sir,

sorry i dint get you sir,

We paying 6k pm
per year it will be 72 k

so cutoff limit is 30k

still are we liable.

Ganeshbabu K

Ganeshbabu K (Expert)

15 January 2014 threshold limit(75000) not exceeded and tds not required to deduct

Deven

Deven (Querist)

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

AVTAR SINGH

AVTAR SINGH (Expert)

15 January 2014 One time payment should not exceed 30000 and total of yearly payment should not exceed 75000.

AVTAR SINGH

AVTAR SINGH (Expert)

15 January 2014 One time payment should not exceed 30000 and total of yearly payment should not exceed 75000.

Vishal

Vishal (Expert)

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.

Trust the above clarifies.

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