Tds 194 H & Penalty

Mrs H earns a commission of Rs 250000, and co only deduct TDS on Rs 50000 i.e Rs 5000. Is Mrs H should claim TDS on whole of Rs 250000 i.e Rs 25000 or Rs 5000. What to do. What entry to be passed in her books as a commission to the extend of TDS deducted. and other amount . Can She complian against Co for non deduction of TDS.

Replies (8)

why are you bothered about short deduction.  Just pay the tax dues on your income and claim the credit for the actual TDS deducted.

If H earns comission of Rs. 250,000 through bank account then H has to account for the full commission and can claim TDS only Rs. 5,000.

In case H received only Rs. 50,000 throuh bank account then H can account for Rs. 50000 only and can claim TDS of Rs. 5000.

If any amount received in cash by H, H needs to have evidence of receipt for the same to account for it in H's books of account.

If the company do not deduct TDS, it is part of its non-compliance with Income Tax laws. H need not required to complain on the company.

So sir while doing entry in books we have to show entry only on that part of TDS amount deducted , Remaining amount should be

Bank A/c dr                            200000

 To Commission A/C                                  200000

why r you crediting commission only with 200000?

1st entry    Bank A/c dr 200000 ,

                       To Commission account 200000

 

2nd entry

                        Bank A/c 50000,

                        Tds A/c 5000 ,

                                                 to Commission a/c    55000

 

 

Is that correct entry sir, in the books of Mrs H

the entry will be:

 

Bank A/c Dr Rs 245000

TDS Receivable A/c Rs 5000

To Commission A/c Rs 250000

 

okk sir , single Entry

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