CA Nilay Shah
Practising Ca
Hemannt
Practice
+5 Others

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Dear All, I Am working as Assistant accountant in a private ltd company,
They are paying me as Professional fees after deducting TDS on contract non company @ 1%.
I want know whether can i get that 1% from Govt. and how and when ?
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Hi, File your Income Tax Return and show your professional income and claim the tds amount in your IT Return.
Dear Raghuvir, I think the rate you are talking about should not be 1% the applicable rate is 10% Ramakant
Dear Raghuvir,
I think first of all you should check the rate if it is professional consultancy than the rate should be 10%. If the employer deducting 1% and it should be under 194 (C) ie, TDS on contract but in both the cases you can take the refund of tax by filing of income tax return if the tax amount on your total taxable income is nil.
My personal advise is to purchase a Taxmann's latest ready reckoner which can be useful for your day to day queries related to your job and also helpful in updating your tax knowledge.
Regards
Sanjeev
hi raghuvir,
agreed with sanjeev, applicable rate is 10% & same you can claim refund by filling return.
you can place your query with your Mail-ID on our FB page "Bizbuild consultancy services"
we will be happy to answer you..
thanks
You can file income tax return if not any tax liability then refund con be claim.
As per section 194J of Income tax act 1961, a person is required to deduct TDS @ 10% on following payments paid to a resident in excess of Rs. 30,000 during a financial year;
• Fees for professional services; or
• Fees for technical services; or
• Royalty; or
• Non-compete fee as referred under section 28(VA) of income tax act.
Threshold limit of Rs. 30, 000 as specified under section 194J is applicable to each payment separately i.e. applicable independently to each of four items.
Section 194J is applicable to all persons who are making above payments during the financial year.
With effective from 1st of July 2012, TDS under section 194J is also applicable to remuneration, fees or commission paid to a director of a company which is not considered under the head salary. For this particular payment, threshold limit of Rs. 30, 000 as mentioned above is not applicable.
Section 194J is applicable to all persons who are making above payments during the financial year.
But the provisions of section 194J will not be applicable to an individual or HUF in following cases;
• Where technical or professional fee for above expenses are credited or paid exclusively for personal use of such individual or any member of HUF.
• Where total sales, gross receipts or turnover does not exceed the limits of Rs. 1 crore in cases of business or Rs. 25 Lakhs in cases of profession.
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