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Whether The TDS deducted on expens or the payment

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shince augustine

1 Points Posted on 12 November 2021

In the year 2020-21 total professional Charges(resident) incurred is Rs.250,000 from a particular person and the amount paid is Rs.100,000 only Balance payable at the year end.How much is the TDS to be deducted in the year 2020-21 on this. whether for Rs 250,000 or the actual payment of Rs.100,000

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Quick Summary

This discussion clarifies when Tax Deducted at Source (TDS) should be applied to professional charges. The consensus is that TDS is calculated on the total accrued expense, not just the amount actually paid within the financial year. Therefore, if professional charges incurred total £250,000 and only £100,000 has been paid, TDS should be deducted on the full £250,000.