A client of mine deducted TDS on a payment of professional fees. But the limit of Rs.30,000/- is not exceeded. Also client paid some amount to the same person without deduction in 1st quarter. Is there any problem?
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Tds deducted even when limit is not exceeded
Replies (4)
NO,Problem.T.D.S on professional fee will be deducted in case where payment made to a single person in one financial year exceed rs 30000 aggregate but not a single payment.so in your case,when the above payment is made,the aggregate of payments made may exceed rs 30000, that's why T.D.S deducted.but even aggregate does not exceed rs 30000,he may deduct T.D.S
I agree with nuli swami sir, you are right, there is no need to deduct the tds until it reach at the limit of that financial year, you can deduct the tds if the bill will come again, and it will go beyond the limit.
Problem, Not at all.It is always better to pay extra T.D.S. rather than short T.D.S.
Thank you all for the replies.
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