TDS u/s 194C payment to Contractors

Tax will b deducted on aggregate Rs. 52000

As per Section 194C:-No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed twenty thousand rupees :

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.

So on total amount of  Rs.52000 TDS shall be done.

TDS shall be made on Rs. 52000/-

Hi Akankash, Tax shoud be deducted on Rs. 52000 on 25.06.2008.

Thnks for the answers...

but i m nt satisfied with given answers?

my query is that why we deduct tax on back date payment wen it was not exceeding the prescribed limit Rs 50000.

as per section 194C of the income tax act, 1961 tax to be deducted on any single payment made to the contractor of Rs. 20000 or collectively Rs. 50000 during the year. as per ur query, collectively the amt paid to contractor exceeds Rs.50000, on 25.06.08. Hence u hav to deduct tax on Rs.52000/- . Alternatively ,for compliance of tax law u may deduct tax on payment to payment basis without waiting for crossing the said limit of Rs. 20000 or Rs. 50000.

regards,

ratan

TDS should be made on Rs.52000/-

 TDS would be deducted on Rs. 52000

Hey Akankash

Your Question is very good that why should TDS be deducted on the back dated liability.

I wanted to know that the same is a back dated liability or a Payment.

tax on aggregate Rs.52,000 on the day when payment exceeds rs.50,000

tds would be deducted on total of 52000 on the day it exceeds 50000

 on full amt