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Income Tax

TDS / TCS 524 views 2 replies

Rahul Lambe

Sr. Accounts Executive

35 Points Posted on 11 February 2010

Hi all,

Can anyone tell me about conultants taxation system. I am working as an Consultant with IT Company, where TDS is deducted from my Consultancy Fees. and my Net annual income is Rs. 152,000. out of which Rs. 12,000.00 is income from consultation. & Rs. 140,000 is income from salary. Rs. 200 p.m. is deducted from my Consultation fees as a TDS.

Thank you.

Replies (2)

Chintan Shah

534 Points Posted on 12 February 2010

As apparent from the facts stated by you, your taxable income does not exceed the basic exemption limit considering that you are an individual (male). You may apply to the AO where you furnish your return for issuance of no tax deduction certificate in Form No. 13. This certi would be issued to the payer of income directly and he would be advised not to deduct tax at source.

binod Khandelwal

C.A. Manager(Accounts)

85 Points Posted on 12 February 2010

hi Rahul,

TDS on Professional and consultation fees is to be deducted @ 10% if total payment during the year is 20,000/-. U/s 194J

In your case, it seems that your monthly income is Rs. 1000/- p.m i.e, 12000/- P.a from Consultation fees , which is lower than threshold limit of Rs 20000/- .Therefore TDS should not be deducted in your case.

Please note that in your case TDS is deducted @ 20% but actual rate is 10%.