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Tds on cheque issued in kbc by amitabh b.

nishant (article assistant) (32 Points)

02 November 2013

amount of winning in KBC is subject to taxes and than tds is to be deducted on it. but the cheque signed and presented by amitabh is for the actual winning amount without tds being deducted. why so?

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3 Replies

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 02 November 2013

Becoz TDS is also deemed income as per relevant provision of income tax act'1961.So it must form part of actual winnings for presentation purpose.It will attract TDS at the rate of 30% u/s 194B.But your query is correct that why cheque prepared is of full amount.It should be after tax deduction as we done normally.

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 02 November 2013

It may happen that there exist some hidden facts in this case, like the cheque prepared in kbc later on revised after deduction while payment actually made.Becoz sec 194B applies while actual payment is made.