What is the turnover limit for TDS?

TDS under this section must be deducted by any resident person and entity including individuals and HUFs, if their total sales, turnover, or gross receipts exceed Rs. 1 crore (in case of business) or Rs. 50 lakhs (in case of profession) during the preceding financial year.

What is the TDS limit for turnover?

Detailed examination of the items under TDS Section 194Q

As per this provision, any buyer whose annual turnover, gross receipts, or sales exceed Rs. 10 crore in the preceding financial year must deduct TDS at 0.1% on purchases exceeding Rs. 50 lakh from a single seller during the financial year.

Who is not liable to deduct TDS?

Any person making specified payments mentioned under the Income Tax Act is required to deduct TDS at the time of making such payments. But no TDS has to be deducted if the person making the payment is an individual or HUF whose sales from business or profession, is not exceeding Rs. 1 crore or Rs.

Who is eligible for 2% TDS?

Liability to deduct TDS under GST and TDS rate

TDS is to be deducted at the rate of 2% on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.

What is the turnover limit for TDS and TCS on purchase of goods?

Buyers with a turnover exceeding ₹10 Cr in the preceding financial year must deduct TDS if purchasing goods worth over ₹50 lakh from a resident seller. Sellers with a turnover exceeding ₹10 Cr in the preceding financial year must collect TCS if selling goods worth over ₹50 lakh to a buyer.

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What is the minimum turnover for TCS?

What is TCS under Section 206C(1H)? TCS is a tax collected by a seller when the gross turnover exceeds Rs. 10 crore in the previous financial year and the total transaction value from a single buyer surpasses Rs. 50 lakh in the current financial year.

What is the TDS limit for seller?

Threshold Limit: No TDS if the transaction value is below Rs. 50 lakhs. Form for TDS Deduction: Form 26QB is mandatory for reporting TDS deduction. Seller's PAN Requirement: Deduction is done only if the seller has a valid Permanent Account Number (PAN).

What is the minimum income for TDS?

When TDS is deducted another factor that is taken into account is TDS rate on salary! According to the Union Budget, the baseline exemption level under the new system is Rs. 3,00,000 for each individual, therefore, if their pay is less than Rs. 3,00,000, then no TDS needs to be withheld.

What is the difference between TDS and TCS?

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are fundamental components of Indian taxation. TDS represents the tax deducted from payments made when the amount exceeds a set limit. Conversely, TCS refers to the tax collected by sellers during transactions with buyers.

What is the penalty if TDS is not deducted?

Penalty provisions under TDS

The penalty for not deducting/paying TDS would be the amount of tax not deducted/paid as per Section 271C. Until the problem is resolved, a fine of INR 200 per day is payable.

What are the new TDS rules?

TDS Exemption Raised on Investment Income

10,000/- starting April 2025. This means TDS will only be deducted when your total earnings exceed Rs. 10,000/- per year, making tax deductions less frequent.

What is the entry of TDS?

A TDS journal entry records the tax deducted at source during payments like salary, rent, or professional fees. You must record this entry correctly to follow income tax laws. The correct journal entry is: Debit expense account, Credit party account, Credit TDS payable account.

What is the minimum turnover threshold?

While goods suppliers generally have a higher threshold of ₹40 lakh (or ₹20 lakh in some states), service providers must register once their turnover crosses ₹20 lakh (or ₹10 lakh in special category states).

What is the maximum turnover without GST?

As per Section 23 of the CGST Act, every person is required to obtain the GST registration if his turnover from supply of goods or services exceeds Rs. 20 lakhs. This threshold limit has been increased to Rs. 40 lakhs only if supplier is engaged in supply of goods.

Is TDS refundable?

Yes, if you have paid the excessive tax, it will be refunded. To get your additional tax refund, you will have to first file ITR, following which your return will be processed. If you pay any excessive tax, the government will refund it back to your bank account via ECS.

What is TDS with an example?

TDS stands for Tax Deducted at Source. It is a tax collection process ensuring tax deduction on eligible payments like salaries, rent, and professional fees, promoting regular tax inflow and minimising evasion.

How to check TDS status?

How to file TDS return?

TDS returns can be filed both online and offline. For online filing, deductors can use the TIN NSDL or UTIITSL portals. They must prepare the return using the Return Preparation Utility (RPU) and validate it using the File Validation Utility (FVU). Once validated, the return can be uploaded to the portal.

Who should deduct TDS?

Employers must deduct TDS from the salary of those employees whose income exceeds the maximum exempt limit. Employees can submit proof of tax-saving investments and expenses to reduce the TDS amount of the employer. Banks will deduct TDS at 10% from the interest payments on fixed deposits.

What is 194C in TDS?

Section 194C mandates the deduction of Tax Deducted at Source (TDS) on payments made to contractors, including expenses for advertising. The applicable TDS rate is 1% for Hindu Undivided Families (HUFs) or individuals and 2% for other entities.

What is the minimum turnover limit for audit?

A taxpayer is mandatorily subject to tax audit if their business's total sales, turnover, or gross receipts exceed Rs. 1 crore in the financial year. For professionals, this threshold is Rs 50 lakh, unless 95% of receipts are in digital mode, where the threshold is Rs. 75 lakh.