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TDS filing


Raghuram Srinivasan

2014-09-30

I am a PhD student at IISc Bangalore. I get scholarship from the GoI for research. I want to know if this is considered as taxable income.

I am also working as as online tutor (part time), with an Indian company that offers tutoring to school kids in USA. They call us (the tutors) as professionals, with regard to taxes and deduct 10% of our income (on submitting our PAN number) as TDS which according to them (if filed every quaterly), can be refunded at the end of the year. The other option is to not to disclose the PAN number and lose 20% of the income. I don't understand this process of TDS and the options that they have mentioned. Who files a TDS - All earning citizens of India? Please explain what this is. Also want to know if choosing the second option (not disclosing the PAN number) LEGAL, or has penalties for not disclosing?

Thanks in advance,

Raghuram

CA Pulkit Sharma

2014-09-30

Scholarship received to complete your education is exempted from tax (Section 10(16) of income tax act,1961).

However in your second question. What company is doing is perfectly right. As per section 194(J), TDS has to be deducted at 10% on every professional fees made.

As per section 206AA, if PAN is not furnished then Tax will be deducted at 20%.

In your case, company will deduct 10% if your provide PAN otherwise tax will be deducted at 20%.

However if your income is below taxable limits, you can get refund of tds while filing your income tax returns.

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Rajesh Shetty

2014-10-11

Heloo sir.. i have one doubt. if my salary cross more then 250000, can i get refund my TDS . for ex. my salary 350000 how i gt refund 

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CA Pulkit Sharma

2014-10-11

@Rajesh Shetty

If tds is deducted and your tax liability is less than TDS. You will get the refund once you find your Income Tax Return.

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