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Request for Opinion on TDS Applicability and Deduction

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Rajesh Kumar Pandey

Manager-Accounts

54 Points Posted on 08 October 2025

Dear Friends,

Please share your opinion on the following case:

We have been booking service bills from April 2025 to February 2026, each bill being below ₹15,000. Hence, the TDS threshold limit was not crossed during this period, and accordingly, no TDS was deducted.

However, in March 2026, the total cumulative bill amount for the financial year exceeds ₹1,00,000. In this situation, I would like to clarify:

Should TDS be deducted only on the bill received in March 2026 (i.e., the amount exceeding the limit)?
Or should TDS be deducted on the total amount booked during the entire financial year (April 2025 to March 2026)?
If TDS is to be deducted on the total amount for the year, would any interest or penalty apply on the earlier bills (April to February), since TDS was not deducted at that time?

Your valuable inputs on this matter will be highly appreciated.

Replies (4)

Quick Summary

This discussion seeks clarification on Tax Deducted at Source (TDS) applicability for service bills. The user booked several bills below the ₹15,000 threshold between April 2025 and February 2026, resulting in no TDS deduction. However, the cumulative amount exceeded ₹1,00,000 in March 2026. The core question is whether TDS should be deducted only on the March bill or the entire financial year's amount, and if interest or penalties apply to earlier non-deducted bills.