Hello Professional Friends,
We all know that there is limit of Rs.5,000/- in deducting tax from Commission payment.
The deductor is a Private Limited Company.
So my question is-
Shall we check this limit every year? (We shall not deduct tax till limit does not exceed Rs. 5,000/-
or
if once Tax has been started deducting in one year then in next year we shall deduct tax from the payment of very first Ruppe?
You have to check limit every year.
You should be able to compute at the beginning of the year if the commission would exceed the threshold during the eyar. If yes then start deducting tax from teh very first payment. If you are not able to compute then start deducting Tax once the payment crosses the threshold.
AJAY SINGH AND CO LLP
Thane
CA Final
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CCI
Pro
CAclubindia
