In September 2017, My brother's friend took a sum of rs. 2 lakhs from him. He transferred the money from his account. After 10 days he returned 1.65 lakhs . This money came to my brother's account through neft from a company (after deducting tds 1% u/s 194c) . He took my brother's pan number. Now while filling income tax return we found this in his form 26as, (tds. rs. 1650 credited in his account .) My is doing his PG in a hospital and getting 6.7lakh (as stipend) total income from salary. Whether he needs to show income from other sources in respect of the above transaction in his return?
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Tds u/s 194c
Replies (7)
There shouldn't be any TDS if it is only a repayment of amount borrowed. Kindly explain the nature of transaction clearly to decide the taxability
He just given money to his friend and his friend returned the money through payment from a company. His friend's father is an engineer/contractor
May be that company used this transaction to show it as expenditure.
TDS 194c is applicable only for Contracting of job work income
If only a repayment of money, you can ask them to reverse the credit and get a refund of TDS, and pay it to you in money. Because there is no requirement to deduct TDS from what is stated by you
Ok sir, now is it possible to show some income under the head income from other sources by my brother and pay some tax by claiming that tds
His friend told that he will give the excess tax to be paid i.r.o this transaction to my brother
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