WELCOME TO CS STUDY CIRCLE TOPIC :- TDS TAX DEDUCTED AT SOURCE Chapter - XVII Sec.190 to 206A.
Tax:A payment to a public authority required by statue, forpublic purpose. TAX Direct Indirect Tax Tax
Direct Tax: -A tax paid directly by the person or organization onwhom it is levied.E.g.: Income Tax & Wealth Tax.Indirect Tax: - A tax which is not directly paid by the taxpayer but isincluded in his/her expenses.E.g.: Sales Tax, VAT, Service tax etc.
Income Tax Tax levied on Income. Income tax Act was enacted in the year 1961and came into force on 1st Apr 1962. Applicable to whole of India. Regulated by Ministry of Finance.
What is Tax Deducted at source ? Generally tax liability has been calculated at the end of year. To reduce the tax burden on the assesses and to reduce the gap between deriving of income and payment the TDS has been introduced.Tax Deducted at source.
Objectives of introduction of Tax Deducted atSource. It helps in reporting the correct Incomes. It helps in checking Tax evasion. Early collection of revenue by the Government. It is the cheapest mode of collection of tax. It helps to widen the tax base as more and more people are covered.
Sec Type of Payment Rate Exemption limit192 TDS on Salaries. As Individual- Rs.1,60,000/- applicable Women- Rs.1,90,000/- to Senior Citizen- Rs.2,40,000/- Individuals193 TDS on Interest on Scurrilities 10% Rs.2,500/-194A TDS on Interest other than Securities 10% Rs.10,000/- made by post office Rs.5,000/- others194B TDS on Winning from Lotteries 30% Rs.5,000/-194BB TDS on Winning from Horse race 30% Rs.2,500/-194C TDS on payment to contractor or Sub-Contractor. 1% Rs.20,000/-p.a. Individual, HUF 2% for others194H TDS on payment Commission or Brokerage. 10% Rs.2,500/-194I TDS on payment of Rent. 10% Rs.1,20,000/- p.a.194J TDS on payment of any Professional fees Or 10% Rs.20,000/-p.a. technical fees
Quiz Time>>>1. Rate for TDS on Rent?2. Rate for TDS on Salary?3. Rate for TDS on Contractor?4. Exemption limit for Rent?5. Exemption limit for Professional fees?