TDS, or Tax Deducted at Source, was created to help prevent tax evasion on income earned by people and businesses. People can earn money in many ways, like salaries, dividends, bonuses, commissions, and interest. Each of these adds up to a significant amount. Section 194A focuses on interest payments, which are crucial for banks, investments, and the savings of everyday … [Read more...] about Tax Deducted at source (TDS) on Interest Payments: Section 194A
Tax Deducted At Source -TDS
TDS on Payments to Contractors & Professionals: Section 194M
Section 194M was introduced in the Finance Act, 2022 to make the process of TDS (Tax Deducted at Source) simpler for payments to resident contractors and professionals. This rule has been effective since September 1, 2019. Section 194M applies to individuals or Hindu Undivided Families (HUFs) who make payments under a contract, as commission or brokerage, or as fees for … [Read more...] about TDS on Payments to Contractors & Professionals: Section 194M
TDS on Employee Provident Fund or EPF withdrawals – Section 192A
In order to discourage premature withdrawals from employee provident fund, government has introduced section 192A in finance act 2015. As per this section, TDS amount has to be deducted out of the withdrawals from employee provident fund or EPF if certain conditions are satisfied. Employee provident fund withdrawals are taxable in India if the employee doesn't render … [Read more...] about TDS on Employee Provident Fund or EPF withdrawals – Section 192A
TDS on Property Sale in India – Section 194IA
Mr. P Chidambaram has introduced section 194IA in the budget 2013-2014. With the introduction of section 194IA, TDS at the rate of 1% is to be deducted on sale of property transactions by the buyer while paying consideration money to seller. Section 194IA is applicable with effect from 1st of June 2013. Section 194IA states that, TDS at the rate of 1% is to be deducted from … [Read more...] about TDS on Property Sale in India – Section 194IA
Understanding TDS Deduction Under Section 192 from Salary
Tax Deducted at Source (TDS) is a system introduced by the Indian government to collect taxes at the source of income. Under Section 192 of the Income Tax Act, TDS is deducted by an employer from the salary of an employee. This system ensures that employees pay taxes in a timely manner and helps the government maintain a steady flow of revenue. In this article, we will … [Read more...] about Understanding TDS Deduction Under Section 192 from Salary
Losses and other incomes that can be disclosed to employer for TDS
As per section 192 of income tax act, an employee may furnish particulars of other incomes to employer that he has incurred during the financial year. While disclosing, employee can also disclose income tax that has already been deducted from such other incomes. After employee’s declaration, employer will consider other incomes and Tax deducted at source from it while … [Read more...] about Losses and other incomes that can be disclosed to employer for TDS
Section 194B and Section 194BB – TDS on Winning from lottery or crossword puzzles or horse race
Section 194B deals with deduction of TDS in the case of winning from lottery or crossword puzzles and section 194BB is for TDS deduction in case of winning from horse races. Section 194B Under section 194B, any person responsible for paying any amount as winning from followings will attract Tax at Source and the payer has to deduct TDS at the rate of 30% if such amount is … [Read more...] about Section 194B and Section 194BB – TDS on Winning from lottery or crossword puzzles or horse race
Section 193 – TDS from Interest on Securities
Section 193 is applicable to interest on certain specific securities from which TDS has to be deducted at the time of payment or credit to the books of accounts which ever is earlier. Transfer to any account like suspense account other than the party account will be considered as if such interest amount has been credited in the books of account. Any person who is responsible … [Read more...] about Section 193 – TDS from Interest on Securities
Section 194J – TDS on Professional Fees or Technical Services
As per section 194J of Income tax act 1961, a person is required to deduct TDS @ 10% on following payments paid to a resident in excess of Rs. 30,000 during a financial year; Fees for professional services; or Fees for technical services; or Royalty; or Non-compete fee as referred under section 28(VA) of income tax act. Threshold limit of Rs. 30, 000 as specified … [Read more...] about Section 194J – TDS on Professional Fees or Technical Services
TDS under section 194D – Insurance Commission
Section 194D deals with TDS on insurance commission. It’s applicable to any person responsible for paying any income to a resident by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance. Such person shall deduct Tax … [Read more...] about TDS under section 194D – Insurance Commission