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Rule 86B and income tax paid

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Ahuja Shekhar

Accountant

95 Points Posted on 25 May 2022

Respected Sirs,

As you know, one need not to pay 1% GST in cash if in p/y it has paid income tax more than Rs.1,00,000/-

my query is that paid in above sentence is in cash or adjusted through tds also.

means.. last year me humne 3 lakh income tax pay kia jo tds se adjust ho gya.. aur kuch refund bana..

rule 86b applicable or not on us this year,???

Replies (5)

Quick Summary

This discussion clarifies the application of Rule 86B concerning the 1% GST payment in cash. The key question is whether income tax paid via TDS (Tax Deducted at Source) counts towards the £100,000 threshold that exempts businesses from this rule. The consensus is that if your total income tax paid (including TDS adjustments) exceeds £100,000 in the previous financial year, Rule 86B is not applicable, regardless of whether the tax was paid directly in cash or adjusted through TDS.