TDS under section 194H is applicable to the person paying commission or brokerage to a resident exceeding Rs. 5, 000 per annum. Tax at Source has to be deducted at the rate of 10%, at the time of credit or payment whichever is earlier. Section 194H is not applicable to insurance commission as referred in section 194D of income tax act. While deducting TDS under section 194H … [Read more...] about TDS under section 194H – Commission or brokerage
Tax Deducted At Source -TDS
Tax Deduction at source (TDS) on Contractor Payments U/S 194C: A Complete Guide
Tax Deduction at Source (TDS) is a crucial part of the Indian taxation system. If you're paying contractors or subcontractors for services rendered, understanding TDS on contractor payments under Section 194C of the Income Tax Act is essential. This guide will walk you through the details, explaining the process in simple terms so you can comply with tax regulations without any … [Read more...] about Tax Deduction at source (TDS) on Contractor Payments U/S 194C: A Complete Guide
TDS on Rent – Section 194I of Income Tax Act
TDS on rent has to be deducted under section 194I where the aggregate amount paid or credited or likely to be paid or credited to the account of recipient exceeded Rs. 1, 80,000 during the financial year. However, if you are jointly owner of a property then this limit will be applicable to each such joint owner i.e. TDS on rent will be deducted only when the limit of Rs. … [Read more...] about TDS on Rent – Section 194I of Income Tax Act
Common reason of higher Income Tax Deduction
Their can be reasons where TDS from your source of income will exceed the actual tax to be deducted as per the provisions applicable to you. Followings are some of the these situations where such things may happen; Non submission of Investment proof to employer At the beginning of the year, most of the employees will declare their investments to get less IT deduction. At … [Read more...] about Common reason of higher Income Tax Deduction
What Payer should do In Case Of TDS
If you are making any payment or credit which attracts TDS as per the provisions of income tax act then you must follow the followings steps to comply with income tax provisions; Get TAN TAN stands for Tax Deduction Account Number. Every individual responsible for deducting tax at source must obtain a TAN before such deduction. TAN is a ten digit alpha numeric number … [Read more...] about What Payer should do In Case Of TDS
What is TDS – When Should You Deduct Tax At Source
TDS stands for Tax Deduction at Source. As per the provisions of IT act, tax on income shall be payable by deduction at source (TDS) even though such income earned during the financial year is assessable subsequently in the relevant assessment year. Because of this provision, the person who is making payment of your salary, rent, interest etc will deduct income tax (TDS) at a … [Read more...] about What is TDS – When Should You Deduct Tax At Source
How to deduct correct TDS from salary and non salaries items
Income Tax Act directs specified persons to deduct tax from payments which has been specifically required to deduct income tax at the rates specified there in. Different rates are specified for different type of payments to deduct TDS. TDS from salary is deducted by an employer from the salary of employee and deposited in the central government account against the PAN of the … [Read more...] about How to deduct correct TDS from salary and non salaries items
Statement of deduction of tax under subsection (3) of section 200
Every person responsible for deduction of tax under Chapter XVII‐B, shall, in accordance with the provisions of sub‐section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income‐tax (Systems) or the person authorised by the Director General of Income‐tax (Systems), namely:‐ Statement of deduction of tax … [Read more...] about Statement of deduction of tax under subsection (3) of section 200
Statement of collection of tax (TCS) – Form 27EQ under Section 206C (3)
Every collector, shall, in accordance with the provisions of the proviso to subsection (3) of section 206C, deliver, or cause to be delivered, to the Director General of Income‐tax (Systems) or the person authorised by the Director General of Income‐tax (Systems), a quarterly statement in Form No. 27EQ Statements referred to above for the quarter of the financial year ending … [Read more...] about Statement of collection of tax (TCS) – Form 27EQ under Section 206C (3)
Application for allotment of TAN – Tax deduction and collection account number
An application under sub-section (1) of section 203A for the allotment of a tax deduction and collection account number (TAN) shall be made in duplicate in Form No. 49B. An application for TAN shall be made,— In cases where the function of allotment of tax deduction and collection account number (TAN) under section 203A has been assigned by the Chief Commissioner or … [Read more...] about Application for allotment of TAN – Tax deduction and collection account number