regarding TDS

REGARDING APPLICABILITY OF TDS PROVISIONS

IF SOMEONE HAS NOT PAID OR CREDITED RS 20000/- AT SINGLE TRANSACTION OR NOT EXCEEDED RS 50000/- LIMIT U/S 194C THOUGH HE HAS DEDUCTED TAX. WHETHER TDS PROVISION BECOMES APPLICABLE? IF YES FROM WHAT DATE? AND WHERE HE HAS DEPOSITED TAX AFTER DUE DATE OR NOT DEPOSITED AT ALL WHETHER IT ATTRACTS DISALLOWANCE?

Replies (10)

Dear Bhavik,

as per the situation given by u - it will not attract any TDS, so if some one has deducted, that is not reqd. by law.

Now as already deducted then when he will deposit it that is not payees fault, so payee may claim the tds credit on the basis of form 16A recd. from the deductor.

again if deductor has made tfe fault of late payment etc. then will attract penalty.

Thanks

Debashis

Debashish is right

 Debashish is correct.

 

If TDS id deducted although there is no liability to do so, still it has to be deposited within time otherwise interest @ 1% per month or part thereof, is applicable on the TDS amount and the concerned expenditure will not be allowed till you deposit the same.

 

Regards, 

 

CA Ritesh Kothari

i am totally agree with Mr. Debashish but still i would like to know that untill and unless he (deductor) deposits the TDS into Govt account how he can issue the TDS Certificates  (Form 16A).

Dear Raj,

most unexpected question u have asked, now what kind of probm. is there in issuing a TDS Certificate by deductor, is it regarding date of deposite of TDS?

from my personal exp. i seen a number of TDS Certificate where date of TDS was not mentioned. Again in no of cases i seen whewe TDS after deduction not been deposited but TDS Certificate subsequently issued in the name of Payee. I cannot mention this cases in details but this is fact & then too payee can have the TDS Credit or refund, as per law.

Now a new thing has come UTN probably to prevent such kind of malpractices.

Thanks

Debashis

 Hi to all,

        I had a quire regarding TDS deductions, My Salary is 17500 p.m. my company is deducting TDS on every month. but one of my friend told me that procedure is wrong. First company should ask the employee about his savings then only deduct the TDS.

Can u calrify my problem. which way is more secure for employee form TDS.

Originally posted by :mnn
"  Hi to all,

        I had a quire regarding TDS deductions, My Salary is 17500 p.m. my company is deducting TDS on every month. but one of my friend told me that procedure is wrong. First company should ask the employee about his savings then only deduct the TDS.
Can u calrify my problem. which way is more secure for employee form TDS.
"

i dont know anything when it comes to TDS and i wanted to start off with some extra reading and easy learning book can anyone suggest me such a book

Dear mnn & Tejas

mnn ur friend is absolutely correct, the procedure is first ur employer will ask u about ur savings etc. which r allowed as dedn. under it act & then by adjusting such dedns ect. the probable tax liabs is calculated & on that basis TDS is made.

Tejas, ur ref book is ahuja gupta

Thanks

Debashis

 

Hi Everybody,

The whole procedure is like that ......

1. Company will ask the employee(probably in month of april or may) to give his declarations in the prescribed format regarding his/her investments for the Previous Year. 

2. Then they will consider these investments of Chapter VI for deductions while calculating Tax liability of the employee.

3. They will find out monthly liability and deposit it

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