Income tax Changes and Points to take care

• September 7, 2020
• CA Chandan Agarwal's Office

♦ If you are paying more than Rs.50 lakhs to any resident person for any professional / commission or contract work – You need to deduct 5% TDS irrespective of facts that expense is personal or business.

For e.g. Assume you wants to construct a residential house and you hire a contractor and pays more than Rs.50 Lakh you need to deduct 5% TDS irrespective of fact that the expense is personal in nature.

♦ If you are selling “goods” to any person more than Rs.50 lakhs, you need to collect 0.10% TCS from Buyer. However this provision is applicable only if seller turnover is more than Rs.10 crores in preceding financial year.

For e.g. Assume you sells Rs.60 lakhs goods to buyer ABC Limited, then you need to collect 0.10% on 10 lakhs i.e. Rs.1000 from ABC limited in addition to your sales invoice amount.

Read more on: https://taxguru.in/income-tax/income-tax-points-care.html