Quick Answer: What Is The Limit For TDS Deduction?

What is the percentage of TDS to be deducted?

TDS Deduction RateTaxable IncomeTax RateUp to Rs.


2,50,000 to Rs.


5,00,000 to Rs.

10,00,00020%Above Rs.


What is TDS threshold limit?

Threshold Limits under Income Tax ActIT SectionTDS RateThreshold LimitSection 194EE20% of expense in NSS deposits₹ 2,500Section 194F20% of investment in MF or UTI unitsNILSection 194G5% of the commission money from lottery ticket selling.₹ 15,000Section 194H5% of the brokerage earnings₹ 15,00011 more rows

What is the limit of TDS deduction on professional fees?

Rs. 30,000Threshold limit for deducting tax Tax has to be deducted in case the payment is greater than Rs. 30,000 during the year.

Can we deduct TDS at higher rate?

In all situations, the recipient is required to furnish their PAN to the person making the payment. However, there are certain circumstances where the recipient would not have PAN. In such circumstances, the payer is required to adopt the provisions of Section 206AA and deduct tax at a higher rate for the recipient.

Can I get TDS refund?

You can claim the credit in respect of taxes deducted at source and claim refund in the return of income. Please ensure that the TDS is reflected in your Form 26AS. Once the return of income is processed, you will be entitled to receive the refund of TDS.

Who is liable for TDS deduction?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

How is TDS calculated?

The employer deducts TDS on salary at the employee’s ‘average rate’ of income tax. It will be computed as follows: Average Income tax rate = Income tax payable (calculated through slab rates) divided by employee’s estimated income for the financial year. … 1,00,000 per month during the FY 2019-20.

Can TDS be paid without tan?

The buyer of any immovable property need not obtain a TAN (Tax Deduction Account Number) for making payment of the TDS on immovable property. You can make the payment using your PAN. … PAN of the buyer is also mandatory.