Does Base amount for TDS calculation includes the Discount
given ? Means if I have a payment of Rs.1000 and i gave
discount of 1% (Rs. 10) , Do i need to calculate TDS on Rs.
990 or Rs. 1000 ?



Does Base amount for TDS calculation includes the Discount given ? Means if I have a payment of Rs..

Answer / Omendra Yadav

In India, the Income Tax Act specifies that TDS (Tax Deducted at Source) should be calculated on the gross amount (before any discounts). So, in this case, you would need to calculate TDS on Rs. 1000.

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