Professional fees TDS

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  1. Naila

    Naila New Member

    Greetings,

    I am an author with a publication house that publishes books for students to be circulated in schools.
    I am writing 8 GK books, for classes 1 to 8. I am a house wife n work from home. My concern is I am paid an amount of Rs 25000 per book. This agreement started in the month of Feb n will last till July end 2016. Firm had deducted 10% TDS telling me it is a professional fees tax. Do I fall in the category of paying tax as my entire amount is Rs 2 Lac n I am below tax bracket of Rs 2.5 lac for women. Even if I am liable to pay tax how shall I go for the refund.

    Regards
     
  2. CA vikash

    CA vikash New Member

    Hi Naila,
    A) Firstly,your publication is eligible for deducting TDS @ 10% since payment is exceeding Rs 30,000/- aggregate for the whole year as per the provisions of section 194J of Income tax Act,1961
    B) Secondly,since your income is below Rs 250000 for the whole year as mentioned,you does not fall under tax category.
    However,since TDS is deducted from your amount,you are required to file income tax return and claim refund by mentioning your bank account details in ITR
    C) Thirdly,after your return is processed,refund of Rs 20,000 will be credited in your bank account.
    In short,you have to file ITR 4 to claim refund
     
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