Tds calulation for amount beyond exemption limit

TDS 16665 views 10 replies
As per the provisons of TDS deduction (other than salaries) there are specified exemption limit on the amount on which no TDS shall be deducted e.g under section 194 J No TDS should be deducted if the amount paid or likely to be paid during the financial year does not exceed Rs. 30,000. Now my question is - Once the amount paid is over and above the exemption/threshold limit, will the deduction of the TDS is on the amount exceeding the exempt limit or on total amount i.e in above case if amount paid during the financial year reached Rs 32,000 than will the TDS be calculated for entire Rs 32,000 or on Rs 2000 (amount exceeding the exception limit of Rs 30000) Please Guide .
Replies (10)

TDS will attract on whole amount i.e. 32000/-

Thanks Sachin. I would be greatful if you can provide a reference or source confirming this as I need to pass this information further to the payee ( who is getting paid ). He is asking for that .In IT department document I could not found this https://incometaxindia.gov.in/Archive/Tax-deduction-at-source_12022013.pdf

No, it will not be on Rs. 2,000/-. The whole amount shall be subject to TDS deduction.

It will be on 2000 only agreed with mihir
There is no such source available you can refer to the bare act and show the launguage of the relevant provision which clearly states TDS to be deducted on whole amount and not the anou t
and not only on the amount exceeding the limit.

if amount exceed the exemption limit then TDS to deducted on the whole amount

On the whole amount

It is on whole amount. Hope below reference may help you.

https://www.allinterview.com/showanswers/156422.html

TDS is applicable on whole payment. Rs.32000 in this case


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