Section 194-O Monetory Limit

Hi Sir/Madam

As per section 194 O iF Gross amount excceeds Rs. 5,00,000 tds to be deducted at 0.1% 

Suppose if the Amount is 5,20,000, do i need to deduct TDS on 20,000/5,20,000 Please advise

Please advise

Replies (1)

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.

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