Tds threshold limit for professional fees
WebNov 23, 2024 · As per the proviso to Section 194J, TDS shall not be deducted on any payment of fees for professional services in case such sum is paid towards personal purposes of such individual. Hence, in this case, TDS shall be … WebJan 31, 2024 · The threshold limit refers to the amount of payment on which no TDS is payable. TDS provisions only apply if the transaction exceeds the permissible limit. For example, if the amount of professional fees does not exceed ₹30,000/-, no TDS is needed to be deducted under Section 194J. So, in this case, the threshold limit is ₹30,000, and TDS ...
Tds threshold limit for professional fees
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WebFees for professional or technical services: Rs 30,000: 2% (for technical services) (or) 10% (payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;) ... Further, TDS on winnings is deducted at 30%. This threshold limit of deducting the TDS is removed. Hence, no matter what may be ... WebDec 13, 2024 · This implies that the rate of TDS is 10% in case of fees paid for professional services while it is 2% in case of fees for technical services. As the rate of TDS is different for professional services and technical services, looking into the difference between the two is the need of the hour.
WebOct 6, 2024 · 2. TDS Threshold Limits. The threshold limit is the payment amount up to which no TDS is required according to the Income Tax Act 1961. TDS applies if the payment exceeds the set limit. For example, according to section 194J, there will be no TDS if the professional fee is under Rs. 30,000. Here, Rs. 30,000 is the threshold limit. WebApr 13, 2024 · An individual should deduct TDS at the rate of 10% when the following payments are made to a resident, in a fiscal year (higher than Rs.30,000): Amount charged as professional services fee Amount charged as technical service fee Non-compete fee according to the Income Tax Act of Section 28 (VA) Royalty
WebApr 13, 2024 · An individual should deduct TDS at the rate of 10% when the following payments are made to a resident, in a fiscal year (higher than Rs.30,000): Amount charged … WebApr 13, 2024 · 0.1%. 0.1%. 5.0%. 50,00,000/-. In conclusion, TDS is a crucial aspect of income tax compliance, and the TDS rates vary depending on the type of payment and the status …
WebTDS rate specified on professional fee is 10%. TDS required to be deducted = 10% on Rs 1,00,000 = Rs 10,000 Net payment to Mr. XYZ = Gross Amount – TDS Deducted = Rs …
WebMay 26, 2024 · TDS will be deducted regardless of the amount Illustration of TDS Payment Threshold under Section 194J Mr. Roy has received Rs. 25,000 for technical services and Rs. 15,000 for professional services. The total payment made to him is Rs. 40,000 which exceeds the taxable amount limit of Rs. 30,000. rome weather in march aprilhttp://vasai.icai.org/resources/Utilities/Rates_of_TDS/Rates_of_TDS.aspx rome weather january 2023WebMar 25, 2024 · Section 194J of the Income-tax Act, 1961 deals with TDS deduction on fees for professional or technical services. The prescribed persons are required to deduct TDS @10% or 2%, as per the case may be when the payment amount exceeds Rs. 30,000. ... Threshold limit for deducting TDS under section 194J. If any of the above payments … rome weather in early aprilWebMar 3, 2024 · TDS will be deducted at the rate of 2% in case fees for technical services (not being professional services) and for professional services, TDS would be deducted at the … rome weather january averageWebApr 26, 2024 · In case of non availibility of PAN :- TDS shall be at the rate specified or rate of 20% whichever is higher TDS on Non-Filers of ITR under section 206AB (applicable w.e.f … rome weather january 2WebMar 9, 2024 · Threshold Limit for TDS. TDS stands for Tax Deducted at Source. It is a certain amount of charge levied by the GOI on the income earned by an individual in a … rome weather in januaryWebAnswer: Due to the economic situation on account of the COVID-19 pandemic, the government announced a reduction in TDS rates for non-salary payments on 13th May … rome weather september 2020