Tds/us149j

hello,

any person paying-

1) FEES FOR PROFESSIONAL SERVICES; OR

2) FEES FOR TECHNICAL SERVICES; OR

3) ROYALITY OR

4) NON COMPETE FEE REFERRED U/S 28

EXCEEDING RS 30000 IN A YEAR TO ANY RESIDENT IS UNDER OBLIGATION TO DEDUCT TAX AT THE RATE OF 10%. THAT THIS LIMIT OF RS 30000 IS INDEPENDENTLY APPLICABLE FOR EACH OF THE FOUR ITEMS REFERRED ABOVE.

CONCLUSION: AS PER YOUR RECORDS I FOUND THAT YOU RECIEVED ONLY RS 5370 UP TO THE PERIOD 1/7/2012 TO 30/9/2012 ON WHICH TAX RS 537 DEDUCTED. SO FINALLY,

IF YOU ARE NOT ABLE TO RECIEVE MORE THAN RS 30000/- DURING THE PERIOD 1/4/2012 TO 31/3/2012. FEES FOR PROFESSIONAL SERVICES .YOU NOT LAIBLE TO DEDUCT TAX FOR SUCH PAYMENTS MADE TO YOU.& REQUEST THEM TO STOP DEDUCTING TAX.

NOTE: AGGREGATE OF YOUR PROFESSIONAL SERVICES PAYMENTS EXCEEDS RS 30000/- DURING THE PERIOD 1/4/2012 TO 31/3/2012. THEN U LAIBLE FOR TAX @ 10%.

Madam, 

In Your case it is waste to know ? is professional fee - TDS ; Salary - TDS -difference etc.etc.

The purpose of those usiness bbrains is to avoid ESI, PF like payments.  If any body visits that office when you were working in their premises that company is bound to pay PF / ESI like benefits. To avoid this they say that you are not an employee and working for the company like a professional (temporary basis).

That's all.  No need to worry. ( If  you want to reduce that percentage request the company to treat it as a contract work i.e. as if you have undertaken contract work ...and deduct 1%.Of course the company may not agree -as it appears they are 2-oo adherent to laws of the land.

They have deducted -- its fine. But a liberal view could also have been taken by the deductor company. They have assumed that the total payment might cross 30,000 in FY 12-13 and hence deducted from very first invoice.

Now you have to claim refund from the Dept by filing income tax return if your total income is less than 2 lakhs in FY 12-13.