Rekha (HR) 23 May 2011

Tax Deduction

Dear Sir/Madam,

I need to pay a amount of Rs 150000/= to one of my client.

will there be any TDS Deduction on the same if yes then what % amt.

Thanks

Rekha Roy

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7 Replies

Rekha (HR) 23 May 2011

This payment is for One whole year

Sanjeev (Lawyer) 23 May 2011

@ Rekha- what is the payment for is there any contract or if it is a professional fees. The Tax deduction liability depends on the nature of payment.

Rekha (HR) 23 May 2011

Its for the Legal Services on retainership basis

Sanjeev (Lawyer) 23 May 2011

TDS need to be deducted as this would be classified as Professional fees and is above the threshhold limit of Rs 30,000. Tax to be decusted @10% see S.No-13 table below.

SL.No.	Particulars	Threshold Limit	TDS Rate
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.	Int. on Debentures & Bonds Int. on FD’s in Banks/Hsg. Finance Cos. & 8% taxable bonds Int. other than Int. on securities Insurance Commission to Agents (Individuals) Insurance Commission to Agents (Domestic Cos.) Winnings from Lotteries/Cross-word/Game Shows Commission earned on sale of Lottery Tickets Winnings from Horse Races Payments to Advertising Agency Payments to Contractors (per contract) Payments to Sub-contractors Commission & Brokerage (other than transactions relating to Shares & Securities Payment of fees to Professionals / Technical Services p.a. Payment of Rent to Individuals/HUF Payment of Rent on Plant & Machinery or Equipments	2500 10000 5000 20000 5000 10000 1000 5000 20000 30000 30000 5000 30000 180000 180000	10% 10% 10% 10% 20% 30% 10% 30% 1% 1% 1% 10% 10% 10% 2%