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194Q limit of 50 lakh for each year

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amol bramhankar

artical tranee

277 Points Posted on 27 May 2023

1.if I was Deduct TDS last year bcoz purchase exceed 50 lakh , but this year 40 lakh only req. to deduct

2. if I was Deduct TDS last year bcoz purchase exceed 50 lakh , in this purchase is 70 lakh , req. to whole amount or only 20 lakh

Replies (3)

Quick Summary

This discussion clarifies the TDS deduction rules related to the 50 lakh limit per financial year. If your purchases exceeded 50 lakh in the previous year and you deducted TDS, but this year's purchases are below 50 lakh, you still need to deduct TDS if the current year's purchases exceed the threshold. If this year's purchases are 70 lakh, TDS applies to the entire 70 lakh, not just the excess over 50 lakh. TDS is deducted at 0.1% if the seller's PAN is available, and 5% if it's not.

Karan Jyotish

Jyotish Expert

29 Points Posted on 27 May 2023

If your purchase exceeded 50 lakh last year and you deducted TDS, but this year the purchase requirement is only 40 lakh, then you would still be required to deduct TDS if your purchase exceeds 40 lakh. The threshold for TDS deduction may have changed, but if your purchase amount exceeds the current threshold, you would still need to deduct TDS accordingly.
If your purchase exceeded 50 lakh last year and you deducted TDS, and this year your purchase is 70 lakh, then you would be required to deduct TDS on the entire amount of 70 lakh. The threshold for TDS deduction is based on the current year's requirement, and if your purchase exceeds that threshold, you would need to deduct TDS on the entire amount, not just the amount exceeding the threshold.