Tax deducted at source is referred to as TDS. According to the Income Tax Act, any business or individual making a payment must deduct tax at the source if the payment is greater than a specific threshold amount. Professional fees are the type of payment and the 10% tax rate is there for them.
1) Consider Mr Patil has a salary of Rs.70,000. After the work is finished, Mr Patil gets his full cash. In this example, his payee will deduct a tax of Rs. 7,000 from the entire amount and pay him Rs. 63,000 in exchange for his services.
2) When X company pays Mr XYZ professional fees in the amount of Rs 30,000, it must first deduct Rs 3,000 in taxes. Mr XYZ will then get a total payment of Rs 27,000 (Rs 30,000 - Rs 3,000 tax) from X company. The company will then will immediately deposit the Rs. 2,000 to the government.
Read More: What is TDS and why it is deducted? What is TDS and how it is calculated?Your Feedback Matters! How was this Answer?
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What is TDS?
Anand divan
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3 Year
2022-12-06T10:33:11+00:00 2022-12-14T11:39:36+00:00Comment
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