Section 194-O Monetory Limit

As per Section 194-O of the Income Tax Act, if the gross amount exceeds ₹5,00,000, TDS needs to be deducted at 0.1%.

 In your case, since the amount is ₹5,20,000, which exceeds the threshold, you would need to deduct TDS at 0.1% on the entire amount of ₹5,20,000, not just the excess ₹20,000.

The TDS amount would be calculated as follows: TDS Amount = 0.1% of ₹5,20,000 = ₹520 So, you would need to deduct ₹520 as TDS.