In the day to day operations of the business, it is essential to have grip on Tax Deducted at Source (TDS) which acts as a means to collect tax at the inception of the income itself and Tax Collected at Source (TCS) where a seller collects a certain amount of tax from the buyer at the time of sale. In this webinar we will be learning the applicability, non-applicability, prevailing rate of tax and other related provisions of the Income-tax Act with respect to TDS and TCS
The document provides information about Tax Deducted at Source (TDS) in India, including:
1. TDS is a certain percentage deducted from various payments like salary, commission, rent, interest, and dividends that is remitted to the government and can be adjusted against tax due.
2. The concept of TDS aims for "pay as you earn" taxation where tax is deducted at the time of payment.
3. A deductor is the person/company liable to deduct tax from payments made, while a deductee is the person from whom tax is deducted.
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
- Individuals and companies with total income exceeding the maximum taxable limit must file an income tax return by the due date, which is July 31 for most assessees and September 30/November 30 for some.
- Those holding overseas assets or accounts must also file a return even if income is below the taxable limit. Late or revised returns can be filed within 1 year with penalties for failure to file on time.
- The return must be verified digitally in most cases. It must be signed by the individual, partner, director or other authorized person depending on the entity. Strict documentation and procedures must be followed for e-filing.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are:
- TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time.
- Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds.
- Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
The document provides information about Tax Deducted at Source (TDS) in India, including:
1. TDS is a certain percentage deducted from various payments like salary, commission, rent, interest, and dividends that is remitted to the government and can be adjusted against tax due.
2. The concept of TDS aims for "pay as you earn" taxation where tax is deducted at the time of payment.
3. A deductor is the person/company liable to deduct tax from payments made, while a deductee is the person from whom tax is deducted.
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
- Individuals and companies with total income exceeding the maximum taxable limit must file an income tax return by the due date, which is July 31 for most assessees and September 30/November 30 for some.
- Those holding overseas assets or accounts must also file a return even if income is below the taxable limit. Late or revised returns can be filed within 1 year with penalties for failure to file on time.
- The return must be verified digitally in most cases. It must be signed by the individual, partner, director or other authorized person depending on the entity. Strict documentation and procedures must be followed for e-filing.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are:
- TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time.
- Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds.
- Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
1. According to Section 139(1) of the Income Tax Act, every person whose total income exceeds the maximum amount not chargeable to tax or those specified such as companies must file a return of income by the due date in the prescribed form.
2. The due date for filing return of income electronically depends on the type of assessee - it is 30th September for companies and those required to get accounts audited, 30th November for those filing transfer pricing reports, and 31st July for other assessees.
3. It is now mandatory for companies, firms, and individuals subject to tax audit to file returns electronically, while individuals with over 5 lakhs income can
1. There are three key electronic ledgers under GST law - the electronic cash ledger, credit ledger, and liability register.
2. The cash ledger reflects all tax deposits made while the credit ledger contains input tax credits.
3. The liability register shows a taxpayer's total tax liability for a period which is paid by adjusting credits in the ledger or making deposits shown in the cash ledger.
This document provides an introduction and overview of India's GST composition scheme. Key points include:
- The composition scheme is a simple alternative for small taxpayers with turnover less than Rs. 1.5 crore to pay GST at a fixed rate instead of going through regular GST procedures.
- As of 2019, service providers can now opt for the composition scheme if their turnover is below Rs. 50 lakhs.
- To be eligible, total turnover from all businesses with the same PAN must be below Rs. 1.5 crore, and some business types like manufacturers of specific goods are excluded.
- Opting for the composition scheme means no input tax credit can be claimed but
Transition to GST could be a cumbersome process if preparations are not started immediately. VAT/Service tax taxpayers should complete the GST migration. Know more about GST Transitional Provision at https://cleartax.in/s/transition-to-gst/
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
Registration is required under GST for any supplier of goods or services whose aggregate turnover exceeds Rs. 20 lakh. Persons registered under earlier laws will be migrated to GST. Exemptions from registration include agriculturists and those exclusively engaged in exempt supplies. Additional categories requiring compulsory registration include inter-state suppliers and e-commerce operators. Registration involves declaring PAN and other details to obtain a temporary reference number, applying online with documents, and receiving a GSTIN. Amendments and cancellations to registrations are also conducted online. Non-resident taxable persons can obtain temporary registration by submitting passport details.
The document summarizes various exemptions from GST in India, including:
1. Certain goods like live animals, meat, fish, vegetables and fruits are exempt from GST. Common items like sugar, drugs, fertilizers and national flags are also exempt.
2. Many essential services are exempt, including health care, education services up to higher secondary level, religious ceremonies, charitable activities, and pension schemes.
3. Agriculture-related services like warehousing of farm goods, fumigation, crop services and transport are exempt from GST.
4. The government has power to grant exemptions from GST if deemed necessary for public interest.
Tds Presentation as per Finance Act, 2014Manu Katare
1) TDS refers to the deduction of tax at source on certain specified payments. Key provisions around TDS are covered under Chapter XVII-B of the Income Tax Act, 1961.
2) The document outlines various sections related to TDS such as 192 on salaries, 194 on dividends, 194A on interest, 194C on payments to contractors, and exceptions to these sections.
3) It also discusses the rates of TDS to be applied based on the nature of the deductee, including the applicability of surcharge and education cess in case of companies, foreign companies, and non-residents.
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
The document discusses the classification of goods and services under the GST regime in India. It states that HSN (Harmonized System of Nomenclature) codes are used to classify goods according to chapters and headings, while services are classified under a Service Accounting Code (SAC) system with various sections, groups and service codes. It provides examples of HSN and SAC codes and explains how goods and services are mapped to the appropriate classification codes for GST purposes.
This document discusses the meaning, conditions, and payment of advance tax in India according to the Income Tax Act. It provides details on:
- When advance tax is required to be paid based on age and income amount.
- The calculation of advance tax amount and the percentage that must be paid by certain due dates (15th of June, September, December, and March).
- Interest charges for late or deferred payment of advance tax installments.
- Conditions where the Assessing Officer can issue an order requiring payment of advance tax.
- Computation of advance tax amount in cases where the Assessing Officer issues such an order.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
The document provides an overview of refund provisions under GST including situations where refunds may arise, legal provisions, refund procedures and time limits, refund scenarios, and basic features of the refund process. Key points include:
- Refunds can arise from excess payments, exports, deemed exports, provisional assessments, and other situations.
- The CGST and IGST Acts contain provisions regarding refund of tax, interest, and other amounts paid.
- The time limit to claim a refund is 2 years from the relevant date, and refunds must generally be sanctioned within 60 days.
- Various scenarios where refunds may be claimed are described, along with required documents and restrictions.
-
The following presentation enumerates E-way Bill -jurisprudence, the constitutional validity of E-Way bill, governing sections, modes of e-way bill generation, registration, validity, verification, offenses, and penalties. It also states about grievance redressal and documents to be carried during movement.
The document discusses Goods and Services Tax (GST) returns that businesses in India are required to file. It states that under GST, businesses must file three monthly returns (GSTR-1, GSTR-2, GSTR-3) and one annual return each year, totaling 37 returns. GSTR-1 contains outward supply/sales details. GSTR-2 contains purchase/input tax credit details. GSTR-3 is a summarized return generated from GSTR-1 and GSTR-2 with tax liability details. Failure to file returns on time results in late fees.
The document discusses input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. Some key points:
1. ITC aims to ensure tax is levied only on value addition at each stage of supply chain to eliminate cascading of taxes. Only registered taxpayers can claim ITC subject to certain conditions.
2. Eligible inputs/services include those used in business. Capital goods are eligible for ITC over multiple years. ITC must be claimed within prescribed time limits and supported by valid documents.
3. ITC is allowed for taxable and zero-rated supplies but not for exempt, non-taxable or personal consumption. Credit must be apportioned
TDS stands for tax deducted at source, where any person making certain types of payments is required to deduct tax from the payment and deposit it with the government. The key points covered are:
- Common sections related to TDS include 192 (salaries), 193 (interest), 194A (other interest), 194C (contractors), among others.
- Rates and thresholds vary based on the type of payment and recipient. Rates are typically 10-20% and thresholds are amounts like Rs. 30,000 for contractors.
- The payer is responsible for depositing the TDS, issuing certificates to payees, and filing annual returns. Payees can claim credit for TDS against
This document discusses the different types of assessments under the Goods and Services Tax (GST) in India. It defines assessment and describes the key types as self-assessment, provisional assessment, re-assessment, best judgment assessment, and summary assessment. For each type, it provides details on the procedures involved, including applicable forms, timelines for orders, and treatment of interest in case of underpayment or overpayment of taxes. The document summarizes the different assessment scenarios and procedures to help taxpayers and officers understand their obligations and processes under GST.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
This document discusses tax deductible at source in India. It defines key terms like deductor and deductee. It outlines various types of payments that are subject to tax deduction at source, such as salaries, interest, dividends, lottery winnings, and payments to contractors. For each type of payment, it specifies who is responsible for deducting tax, the applicable tax rates, and any important additional details.
The document discusses various provisions related to tax deduction at source (TDS) in India. It provides details of key sections under the Income Tax Act that specify when TDS needs to be deducted for different types of payments, the applicable rates of TDS, and any thresholds or exemptions. Some key points covered include:
- TDS is required to be deducted by any person responsible for paying certain types of income like salaries, interest, rent, commission, professional fees etc. to a resident payee.
- The rates of TDS vary from 10-30% depending on the type of income and payee. Some payments are exempt from TDS if they are below a certain threshold.
1. According to Section 139(1) of the Income Tax Act, every person whose total income exceeds the maximum amount not chargeable to tax or those specified such as companies must file a return of income by the due date in the prescribed form.
2. The due date for filing return of income electronically depends on the type of assessee - it is 30th September for companies and those required to get accounts audited, 30th November for those filing transfer pricing reports, and 31st July for other assessees.
3. It is now mandatory for companies, firms, and individuals subject to tax audit to file returns electronically, while individuals with over 5 lakhs income can
1. There are three key electronic ledgers under GST law - the electronic cash ledger, credit ledger, and liability register.
2. The cash ledger reflects all tax deposits made while the credit ledger contains input tax credits.
3. The liability register shows a taxpayer's total tax liability for a period which is paid by adjusting credits in the ledger or making deposits shown in the cash ledger.
This document provides an introduction and overview of India's GST composition scheme. Key points include:
- The composition scheme is a simple alternative for small taxpayers with turnover less than Rs. 1.5 crore to pay GST at a fixed rate instead of going through regular GST procedures.
- As of 2019, service providers can now opt for the composition scheme if their turnover is below Rs. 50 lakhs.
- To be eligible, total turnover from all businesses with the same PAN must be below Rs. 1.5 crore, and some business types like manufacturers of specific goods are excluded.
- Opting for the composition scheme means no input tax credit can be claimed but
Transition to GST could be a cumbersome process if preparations are not started immediately. VAT/Service tax taxpayers should complete the GST migration. Know more about GST Transitional Provision at https://cleartax.in/s/transition-to-gst/
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
Registration is required under GST for any supplier of goods or services whose aggregate turnover exceeds Rs. 20 lakh. Persons registered under earlier laws will be migrated to GST. Exemptions from registration include agriculturists and those exclusively engaged in exempt supplies. Additional categories requiring compulsory registration include inter-state suppliers and e-commerce operators. Registration involves declaring PAN and other details to obtain a temporary reference number, applying online with documents, and receiving a GSTIN. Amendments and cancellations to registrations are also conducted online. Non-resident taxable persons can obtain temporary registration by submitting passport details.
The document summarizes various exemptions from GST in India, including:
1. Certain goods like live animals, meat, fish, vegetables and fruits are exempt from GST. Common items like sugar, drugs, fertilizers and national flags are also exempt.
2. Many essential services are exempt, including health care, education services up to higher secondary level, religious ceremonies, charitable activities, and pension schemes.
3. Agriculture-related services like warehousing of farm goods, fumigation, crop services and transport are exempt from GST.
4. The government has power to grant exemptions from GST if deemed necessary for public interest.
Tds Presentation as per Finance Act, 2014Manu Katare
1) TDS refers to the deduction of tax at source on certain specified payments. Key provisions around TDS are covered under Chapter XVII-B of the Income Tax Act, 1961.
2) The document outlines various sections related to TDS such as 192 on salaries, 194 on dividends, 194A on interest, 194C on payments to contractors, and exceptions to these sections.
3) It also discusses the rates of TDS to be applied based on the nature of the deductee, including the applicability of surcharge and education cess in case of companies, foreign companies, and non-residents.
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
The document discusses the classification of goods and services under the GST regime in India. It states that HSN (Harmonized System of Nomenclature) codes are used to classify goods according to chapters and headings, while services are classified under a Service Accounting Code (SAC) system with various sections, groups and service codes. It provides examples of HSN and SAC codes and explains how goods and services are mapped to the appropriate classification codes for GST purposes.
This document discusses the meaning, conditions, and payment of advance tax in India according to the Income Tax Act. It provides details on:
- When advance tax is required to be paid based on age and income amount.
- The calculation of advance tax amount and the percentage that must be paid by certain due dates (15th of June, September, December, and March).
- Interest charges for late or deferred payment of advance tax installments.
- Conditions where the Assessing Officer can issue an order requiring payment of advance tax.
- Computation of advance tax amount in cases where the Assessing Officer issues such an order.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
The document provides an overview of refund provisions under GST including situations where refunds may arise, legal provisions, refund procedures and time limits, refund scenarios, and basic features of the refund process. Key points include:
- Refunds can arise from excess payments, exports, deemed exports, provisional assessments, and other situations.
- The CGST and IGST Acts contain provisions regarding refund of tax, interest, and other amounts paid.
- The time limit to claim a refund is 2 years from the relevant date, and refunds must generally be sanctioned within 60 days.
- Various scenarios where refunds may be claimed are described, along with required documents and restrictions.
-
The following presentation enumerates E-way Bill -jurisprudence, the constitutional validity of E-Way bill, governing sections, modes of e-way bill generation, registration, validity, verification, offenses, and penalties. It also states about grievance redressal and documents to be carried during movement.
The document discusses Goods and Services Tax (GST) returns that businesses in India are required to file. It states that under GST, businesses must file three monthly returns (GSTR-1, GSTR-2, GSTR-3) and one annual return each year, totaling 37 returns. GSTR-1 contains outward supply/sales details. GSTR-2 contains purchase/input tax credit details. GSTR-3 is a summarized return generated from GSTR-1 and GSTR-2 with tax liability details. Failure to file returns on time results in late fees.
The document discusses input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. Some key points:
1. ITC aims to ensure tax is levied only on value addition at each stage of supply chain to eliminate cascading of taxes. Only registered taxpayers can claim ITC subject to certain conditions.
2. Eligible inputs/services include those used in business. Capital goods are eligible for ITC over multiple years. ITC must be claimed within prescribed time limits and supported by valid documents.
3. ITC is allowed for taxable and zero-rated supplies but not for exempt, non-taxable or personal consumption. Credit must be apportioned
TDS stands for tax deducted at source, where any person making certain types of payments is required to deduct tax from the payment and deposit it with the government. The key points covered are:
- Common sections related to TDS include 192 (salaries), 193 (interest), 194A (other interest), 194C (contractors), among others.
- Rates and thresholds vary based on the type of payment and recipient. Rates are typically 10-20% and thresholds are amounts like Rs. 30,000 for contractors.
- The payer is responsible for depositing the TDS, issuing certificates to payees, and filing annual returns. Payees can claim credit for TDS against
This document discusses the different types of assessments under the Goods and Services Tax (GST) in India. It defines assessment and describes the key types as self-assessment, provisional assessment, re-assessment, best judgment assessment, and summary assessment. For each type, it provides details on the procedures involved, including applicable forms, timelines for orders, and treatment of interest in case of underpayment or overpayment of taxes. The document summarizes the different assessment scenarios and procedures to help taxpayers and officers understand their obligations and processes under GST.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
This document discusses tax deductible at source in India. It defines key terms like deductor and deductee. It outlines various types of payments that are subject to tax deduction at source, such as salaries, interest, dividends, lottery winnings, and payments to contractors. For each type of payment, it specifies who is responsible for deducting tax, the applicable tax rates, and any important additional details.
The document discusses various provisions related to tax deduction at source (TDS) in India. It provides details of key sections under the Income Tax Act that specify when TDS needs to be deducted for different types of payments, the applicable rates of TDS, and any thresholds or exemptions. Some key points covered include:
- TDS is required to be deducted by any person responsible for paying certain types of income like salaries, interest, rent, commission, professional fees etc. to a resident payee.
- The rates of TDS vary from 10-30% depending on the type of income and payee. Some payments are exempt from TDS if they are below a certain threshold.
When non-residents are not required to file tax returns for income earned in ...DVSResearchFoundatio
Key Takeaways:
Charging section for taxability of non-residents
Incomes of non-residents for which no returns to be filed
Conditions to be satisfied for non-filing of returns
Representative assessee and its liability
TDS refers to tax deducted at source, which is a mechanism in India to collect income tax. It applies to various types of income such as salaries, business income, interest income, and capital gains. For salaries, the employer is responsible for deducting tax from an employee's salary and depositing it with the government. Interest income also faces TDS, where the payer of interest needs to deduct tax depending on the type of interest and exemption limits. Documents like TDS certificates and quarterly returns need to be issued to deductees and submitted to the tax department respectively.
Protect your employees and their families through this self – financing social security and health insurance scheme, Professional Tax is levied by the state government on the income earned by professionals. Get the information about Tax Deducted at Source (TDS) Returns, ESI Returns and Professional Tax Registration and the Process.
Tax deducted at source (TDS) for interest on securities (debentures) – Sectio...OnlineITreturn
Barring certain exception, tax has to be deducted at source on payment of interest on securities to residents.Who is liable to deduct TDS? Any assessee be it Individual, company, HUF , Partnership etc.
For whom should TDS be deducted? From Resident assessee (individual, company, HUF etc) to whom interest is paid
The document discusses the taxation of income from house property in India. [1] It outlines the conditions that must be met for a property to be considered a house property under the Income Tax Act, including that the assessee must own the property and not use it for business purposes. [2] It then discusses various scenarios where income from a house property may be taxable or exempt from taxation. [3] Key considerations around the calculation of income from house property such as the gross annual value, deductions, and net annual income are also summarized.
This document discusses income that falls under the category of "Income from Other Sources" according to India's Income Tax Act of 1961. It provides definitions and examples of various types of income taxable as "residuary income" including interest income, dividend income, family pension, casual income, and income from property acquired without adequate consideration. It also outlines deductions that can be claimed and expenses that are not deductible for this category of income.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to chargeability of Income from Sources other than Salary, House Property, Business or Profession and Capital Gains. In this Webinar, we will discuss the various incomes that are chargeable under the head 'Income From Other Sources' which covers Dividends, Gifts, Certain Interest, Advance money forfeited etc. Finally, the Webinar will touch upon relevant Judicial Precedents.
This document summarizes key provisions related to tax deducted at source (TDS) under the Indian Income Tax Act, including:
1) Sections related to TDS for salary (192), interest (193), dividends (194), rent (194I), professional fees (194J), and payments to contractors (194C).
2) The document outlines thresholds and exceptions for when TDS applies. For example, no TDS is required for dividends under Rs. 2,500 or interest under Rs. 5,000.
3) It discusses how the recipient can obtain a certificate for lower TDS rates under Section 197.
The document summarizes key aspects of the Direct Taxes Code Bill, 2009 introduced in India, including proposed changes to tax rates, definitions, and tax deduction at source rules. Some notable changes include substantial increases to individual income tax slabs, reduction of corporate tax rate to 25%, expansion of income deemed to accrue in India, removal of the concept of "resident but not ordinarily resident", and modifications to tax deduction at source rates and exemptions across various categories including interest, rent, commission, and payments to contractors.
This document discusses India's tax deduction and collection system (TDS/TCS). It provides an overview of key aspects of TDS such as the purpose of collecting tax at source to reduce tax evasion, payments that are subject to TDS including salaries, contractor payments, rent, and professional fees. It also outlines TDS rates, timing of deductions, documentation requirements, and penalties for non-compliance.
Objectives & Agenda :
To know the need and relevanve of income tax, its applicability and its commencement date. To understand the meaning of the term "income" and "tax" and additionally the relevant terms in relation to income and taxes. The webinar shall predominantly focus on the basic and fundamental provisions of Income Tax Act, 1961, which is required to further appreciate the subsequent charging and computational provisions.
The document discusses various provisions related to tax deducted at source (TDS) in India. It explains the objectives of TDS which include helping report correct incomes, check tax evasion, and widen the tax net. It discusses key sections like 192 on payment of salaries, 193 on interest on securities, 194 on dividends, 194A on interest other than interest on securities, and common provisions around rate of TDS, threshold limits for deduction, and procedures.
This document defines key terms related to income tax in India. It explains that the assessment year is the year following the financial year in which income is assessed. The previous year is the financial year in which income is earned. It defines who qualifies as a person, assessee, representative assessee, and deemed assessee for income tax purposes. It also explains how gross total income, total income, casual income, and agricultural income are defined and treated for income tax.
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
TDS stands for Tax Deducted at Source. As per the Income Tax Act, any person or company making certain types of payments above a threshold amount is required to deduct tax from the payment. This deducted tax is then deposited with the government. Common types of payments where TDS applies include salaries, rent, contract payments, professional fees, interest payments, and others. It is the responsibility of the deductor to deduct TDS at the time of making the payment and deposit it with the government on time. The deductee can claim tax credit for the TDS amount deducted based on the TDS certificate provided by the deductor.
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
The document summarizes the scrapping of retroactive tax provisions in India. It provides background on retroactive taxation laws introduced in 2012 in response to court rulings. It analyzes prominent cases like Vodafone and Cairn Energy that challenged the retroactive taxes under bilateral investment treaties. The Taxation Laws Amendment Act of 2021 was passed to scrap these retroactive provisions and provide tax refunds to affected companies like Cairn Energy. The act aims to improve India's reputation as an investment destination and revive interest from foreign investors.
Key Takeaways: - Analysis of section 45(4), section 9B of the Income Tax Act...DVSResearchFoundatio
Key Takeaways:
- Analysis of section 45(4), section 9B of the Income Tax Act and Rule 8AA and Rule 8AB of Income Tax Rules
- Illustrations to understand the relevant impact
- Critical Issues concerned with the provisions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
FALLACIOUS DISREGARDING OF TRANSACTIONS THAT RESULT IN A TAX BENEFIT TO THE A...DVSResearchFoundatio
Key Takeaways:
- Facts of the case
- AO's contention
- Ruling of CIT(A) and issues for consideration of the ITAT
- Observations of ITAT
- Final Ruling
- Way Forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
The Supreme Court ruled that the conversion of outstanding interest into debentures by the assessee company qualified for deduction under Section 43B of the Income Tax Act. The conversion was done under a rehabilitation plan agreed with institutional creditors to extinguish the interest liability. The Court observed that Section 43B was not meant to affect bona fide transactions, and debentures were different than loans/borrowings under Explanation 3C. It set aside the High Court's decision and allowed the assessee's claim for deduction, noting the conversion was an actual payment of interest rather than postponing the liability.
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
This document outlines the process and documentation required for an SME to obtain an in-principle approval for an initial public offering (IPO) listing on the National Stock Exchange of India (NSE). It details the documents required to be submitted on T+2, T+3, T+4, and T+5 days from the date of in-principle approval to finalize the listing. These include annual reports, board resolutions, shareholding details, basis of allotment, post-issue shareholding pattern, and confirmation from issuers, merchant bankers, and statutory auditors. It also provides information on NEAPS platform registration and payment of processing and annual listing fees.
What are the post listing compliance norms for SME entities?DVSResearchFoundatio
The document summarizes post-listing compliance norms for small and medium enterprises (SMEs) listed on SME exchanges in India. It discusses requirements for further capital issues, green shoe options, migration to the main board, further public offerings, and mandatory and voluntary disclosures. Key requirements include making full disclosures for further issues, obtaining shareholder approval for green shoe options, complying with eligibility criteria for migration, and submitting regular financial disclosures and statements on the use of IPO proceeds.
1) Prior to listing on an SME exchange, a company must file an offer document with SEBI and the relevant stock exchange and appoint qualified intermediaries like lead managers, registrars, and syndicate members.
2) The company must make required disclosures in the offer document and the lead manager must conduct due diligence on these disclosures.
3) After filing the offer document, the company must price the issue, keep the issue open for subscription for at least 3 days, and ensure the issue is underwritten and market making arrangements are in place.
This document outlines the criteria for Small and Medium Enterprises (SMEs) to list on the SME platforms of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. The key eligibility criteria are a positive net worth, a track record of at least 3 years of operations, and operating profits over the last 2-3 years. Additional disclosure requirements include details on directors, regulatory actions, litigation status, and defaults. SMEs listed can later migrate to the main board of the exchanges if they meet certain criteria like company size and track record. As of now, over 220 companies are listed on NSE's SME platform and over 100 have migrated from BSE's SME platform
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
An Indian individual seeks to incorporate a company in Singapore. The process involves obtaining name approval, determining the company structure as a private or public company, appointing directors and other key personnel, selecting a registered office address, and drafting a company constitution. Once incorporated, the new company can open a Singapore bank account and obtain a tax residency certificate. Indian regulations allow for foreign direct investment through the automatic route or approval route depending on the amount and financial commitment. The entire incorporation process can be completed quickly online but setting up documents may take a few days.
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
3. Legends used in the Presentation
AOP Association of Persons
BOI Body of Individuals
CBDT Central Board of Direct Taxes
CG Central Government
EDA Estate Duty Act
EPF Employees Provident Fund
GIC General Insurance Corporation
GTA Gift Tax Act
HUF Hindu undivided family
IRS Indian Revenue Service
ITA Income Tax Act, 1961
LIC Life Insurance Corporation
PAN Permanent Account Number
PY Previous Year
RPF Recognized Provident Fund
SG State Government
TAN Tax deduction Account Number
TCS Tax Collected at Source
TDS Tax Deducted at Source
UTI Unit Trust of India
WTA Wealth Tax Act, 1957
4. Sections Covered
Sec Particulars
192 Salary
192A Payment of accumulated balance due to an employee
193 Interest on securities
194A Interest other than Interest on securities
194B Winnings from lottery or crossword puzzle
194BB Winnings from horse race
194C Payments to contractors
194D Insurance commission
194DA Payment in respect of life insurance policy
194E
Payments to non-resident sportsmen or sports
associations
194EE
Payments in respect of deposits under National Savings
Scheme, etc
194F
Payments on account of repurchase of units by Mutual
Fund or Unit Trust of India
194G Commission, etc., on the sale of lottery tickets
194H Commission or brokerage
Secs Particulars
194I Rent
194IA
Payment on transfer of certain immovable property
other than agricultural land
194IB Payment of rent by certain individuals or HUF
194IC Payment under specified agreement
194J Fees for professional or technical services
194LA
Payment of compensation on acquisition of certain
immovable property
194LB Income by way of interest from infrastructure debt fund
194LBA Certain income from units of a business trust
194LBB Income in respect of units of investment fund
194LBC Income in respect of investment in securitization trust
194LC Income by way of interest from Indian company
194LD
Income by way of interest on certain bonds and
Government securities
194M Payment of certain sums by certain individuals or HUF
194N Payment of certain amounts in cash
206C Collection at Source
5. Introduction
Mode of collecting income tax
Controlled by CBDT
Combines the concept of pay as you earn and collect as it is earned
Acts as a tool to collect tax in order to minimise tax evasion
Reduces the burden of paying taxes as a lumpsum
Steady inflow of revenue to Government
6. Manner of deduction
Salary – Sec 192
Applicability
Every person responsible for paying any income chargeable to tax under
the head ‘Salaries’ to deduct income tax on the amount payable
For purposes of deduction of tax out of salaries payable in a foreign currency, the value of salaries in
terms of rupees should be calculated at the telegraphic transfer buying rate on date of deduction
In respect of salary payments to employees of Government or to employees of companies, co-operative
societies, local authorities, universities, institutions, associations or bodies, deduction of tax at source
should be made after allowing relief under Sec 89 (arrears or advance of salary), where eligible
Where an assessee has income from sources other than ‘Salary’ such income shall be disclosed to the
deductor and TDS shall be deducted accordingly
Rate of TDS • Such income-tax has to be calculated at the average rate of income-tax
• Average rate means the rate arrived at by dividing the amount of income-tax by the total income
Other Conditions
• Payment of tax on non-monetary perquisites - the employer may pay this tax,
at his option, in lieu of deduction of tax at source at the average rate applicable
7. Payment of Accumulated Balance Due to an Employee - Sec 192A
Applicability
• Taxable premature withdrawal from EPF scheme
• Trustees of the EPF scheme or any person authorised to make
payment of accumulated balance due to employees
Time of Deduction Time of payment of accumulated balance due to the employee
Non-applicability Amount or aggregate amount of such payment is less than Rs. 50,000
Requirement of
Furnishing PAN
• Any person entitled to receive any amount has to furnish his PAN to the
person responsible for deducting such tax
• On Failure, Deduction shall be made maximum marginal rate
Rate of TDS 10%
Maximum Marginal Rate means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the
highest slab of income in the case of an individual, AOP or, BOI as specified in the Finance Act of the relevant year
8. Interest on Securities - Sec 193
Applicability Every person responsible for paying to a resident any income by way of interest on securities
Rate of TDS At the rates in force – which is 10%
Time of deduction • At the time of credit of such income to the account of payee (includes credit to suspense or payable account)
or
• At the time of payment by way of cash or by issue of a cheque draft or by any other mode
whichever is earlier
Any interest payable on 4 % National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident; or
Any interest payable on National Development Bonds; or
Any interest payable on 7-Year National Savings Certificates (IV Issue); or
Any interest on debentures, issued by any institution or authority, or public sector company, or co-operative society, as notified by CG
Any interest payable to the LIC
Any interest payable to the General Insurance Corporation
Any interest payable to any other insurer in respect of any securities owned by it or in which it has full beneficial interest;
Non- applicability
Rate of TDS
9. Securities
Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any
incorporated company or other body corporate
Derivative
Units or any other instrument issued by any collective investment scheme to the investors in such schemes
Receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer
pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the
financial asset involved in securitisation
Units or any other such instrument issued to the investors under any mutual fund scheme
Government securities
Such other instruments as may be declared by the Central Government to be securities and
Rights or interest in securities
Securities shall include: —
10. Interest other than Interest on Securities - Sec 194A
Applicability • Interest other than interest on securities paid to Residents
• By Individuals and HUF subject to Tax Audit in the previous FY
• And Other Assessees
Time of deduction • At the time of crediting such interest to the payee or
• At the time of its payment in cash or by any other mode,
whichever is earlier
At the rates in force – which is 10%Rate of TDS
Non-applicability No deduction shall be made:
If the aggregate amount of interest paid or credited during the FY does not exceed Rs. 5,000
However, the limit will be Rs. 40,000 in respect of interest paid on :
Time deposits with a
banking company
Time deposits with a co-operative society
engaged in banking business
Deposits with post office under
notified schemes
The limit Rs. 40,000 is increased to Rs. 50,000 in case of payee being a resident senior citizen
11. By a firm to any of its partners
By a co-operative society to a member or to any other co-operative society
By way of deposits under any scheme framed by the CG
By way of deposits (other than time deposits) with:
Deposits with primary agricultural credit society or a primary credit society or a co-operative land
mortgage bank or a co-operative land development bank
By the CG under any provisions of Income-tax Act
A bank to which the Banking
Regulation Act, 1949 applies:
or
A co-operative society
engaged in carrying on the
business of banking
Interest credited or paid:
Interest paid or credited to the following entities:
Banking companies or co-operative societies engaged in the business of banking
Financial corporations under Central, State or Provincial Act
LIC, UTI, Insurance business carried by companies and co-operative societies
Contd. – Non Applicability
Notified institution, association, body by CG
12. Winnings from Lottery or Crossword Puzzle - Sec 194B
Any income arising by way of winnings from lotteries, crossword puzzles, card
game and other game of any sort other than horse races
Rate of TDS 30%
Responsibility to deduct TDS Every person responsible for paying to any person
Resident or Non-resident
Any income which falls under this Sec is required to deduct income tax, if the amount of payment exceeds Rs. 10,000
Where winnings are partly paid in cash and partly in kind
• Where the winnings are wholly in kind or partly in cash and partly in kind
• but the part in cash is not sufficient to meet the tax liability of deduction of tax
• Then the person responsible for paying shall, before releasing the winnings,
• Shall ensure that tax has been paid
Applicability
13. Rate of TDS
Any income arising by of winnings from horse race
30%
Responsibility to deduct TDS
The following person shall be responsible for deducting TDS
Bookmaker
A person to whom license has been
granted by government
For horse racing in any
race course
For arranging for wagering (to risk
money by guessing the result of
something) or betting in any race
courseThreshold limit
The obligation to deduct TDS when winnings from any horse race is in excess of Rs. 10,000
Winnings from Horse Race – Sec 194 BB
Applicability
A bookmaker is an organization or a person that accepts and pays off bets on sporting and other events at agreed-upon odds
14. Applicability Any person responsible for paying any sum to any resident for carrying out any work in
pursuance of a contract between the contractor and specified person
Specified person CG or SG or local authority, any government of foreign state or a foreign enterprise
Any company, co-operative society, trust, firm, and
Any person being an individual or HUF or AOP subject to tax audit in the immediately preceding FY
Time of Deduction • At the time of payment of such sum or
• at the time of credit of such sum to the account of contractor,
whichever is earlier
Payments to Contractors – Sec 194 C
Payee TDS rate
Individual/ HUF 1%
Other than Individual/ HUF 2%
Contractor in transport business (if PAN is furnished) Nil
Sub-contractor in transport business (if PAN is
furnished) Nil
Rate of TDS
15. Work includes:
Advertising, broadcasting and telecasting, carriage of goods or passengers by any mode of transport other than by railways
Catering, manufacturing or supplying a product according to the specifications of customer by using customer's material
Contd.
Non- Applicability
No deduction is required during the course of business of plying, hiring or leasing goods carriages if PAN is
furnished to deductor
No tax has to be deducted at source in respect of payments made by individuals/ HUF to a contractor
exclusively for personal purposes
Threshold limit Tax has to be deducted at source where the amount credited or paid exceeds
Rs. 30,000 in single payment or Rs. 1,00,000 in aggregate during the FY
16. Applicability any person responsible for paying to a resident any income by way of remuneration or reward, by commission
or otherwise, for soliciting or procuring Insurance business
Rate of TDS 5%
Tax to be deducted if such income or aggregate of amounts of such income exceeds Rs. 15,000 during the FY
Insurance Commission – Sec 194 D
• At the time of the credit of the income to the account of the payee or
• at the time of making the payment to the payee,
whichever is earlier.
Time of Deduction
Threshold limit
Payment in respect of Life Insurance Policy – Sec 194DA
Applicability Sum received under a life insurance policy which is not exempt under Sec 10(10D)
Rate of TDS Deduction is made at the rate of 1% on any sum paid to a resident.
However, with effect from 01-09-2019 tax is to be deducted at the rate of 5%
Threshold limit If the payment or aggregate payments in a FY to an assessee is Rs. 1,00,000 or more
17. Sec 10(10D)
Any sum received under a life insurance policy, including the sum allocated by
way of bonus on such policy is exempt from tax, except the following
Any sum received under a policy where the dependent of the assessee (who has claimed
80DD or 80DDA deduction predeceases and the assessee receives the sum assured
Any sum received under a Keyman insurance policy
Any sum received under an insurance policy n respect of which the premium payable for any
of the years during the term of the policy exceeds 10% of the actual capital sum assured
The limit shall be 15% in case of policy taken for person with disability or disease or ailment
(Sec 80U or 80DDB)
18. • Any income referred to in Sec 115BBA (Game Fee, Advertisement, Contribution to Articles, any winnings etc. )
• Payable to a non-resident sportsman (including an athlete) or an entertainer who is not a citizen of India or a
non-resident sports association or institution.
Applicability
Rate of TDS 20%
Deduction should be made at the time of credit of such income to the account of the payee or at the time
of payment, whichever is earlier
Time of deduction
Mode of payment can be in cash or by issue of a cheque or draft or by any other mode
Payments to Non-resident Sportsmen or Sports Association –
Sec 194 E
Rate of TDS At the rate of 10% at the time of payment
No such deduction shall be made where the amount of payment or the
aggregate amount of payments in a FY is less than Rs. 2,500
Non-applicability Payments made to the heirs of the assessee shall not attract TDS under this Sec
Payments in Respect of Deposits under National Savings
Scheme etc. - Sec 194EE
Person responsible for paying to any person any amount from National Savings Scheme AccountApplicability
Threshold limit
19. Commission etc. on the Sale of Lottery Tickets - Sec 194G
Applicability
Time of deduction Deduction should be made at the time of credit of such income to the account of the payee or at the time
of payment, whichever is earlier
Mode of payment can be in cash or by issue of a cheque or draft or by any other mode
Person responsible for paying to any person, who is or has been stocking, distributing, purchasing or
selling lottery tickets, any income by way of commission, remuneration or prize on lottery tickets
Rate of TDS
Threshold limit Amount exceeding Rs. 15,000
5%
20% at the time of payment of such amount
Repurchase of units by Mutual Fund or Unit Trust of India – Sec 194F
A person responsible for paying to any person any amount on account of
repurchase of units covered under Equity Linked Savings Scheme (Sec 80CCB)
Applicability
Rate of TDS
20. Applicability
and Rate of TDS
Any person who is responsible for paying any income by way of commission (other than insurance
commission) or brokerage to a resident shall deduct income tax at the rate of 5%
However, an individual or HUF not subject to Tax Audit preceding FY is not liable to deduct TDS
Time of deduction Such deduction should be made at the time of credit of such income to the account of the payee
or at the time of payment of such income, whichever is earlier.
Mode of payment may be by cash, cheque, draft or any other mode
Threshold limit No deduction is required if the amount of such income or the aggregate of such amount
does not exceed Rs. 15,000 during the FY
Commission or Brokerage - Sec 194H
Meaning of Commission or brokerage
any payment received or receivable, directly or indirectly, by a person acting on behalf of another person
• for services rendered,
• or for any services in the course of buying or selling of goods,
• or in relation to any transaction relating to any asset, valuable article or thing, other than securities.
Non- Applicability This Sec is not applicable to professional services (which is covered under Sec 194J)
Commission or brokerage includes:
21. Applicability and Rate of TDS Any person who is responsible for paying to a resident any
income by way of rent shall deduct income tax at the rate of:
2% in respect of rent for plant, machinery or equipment 10% in respect of other rental payments
Rent - Sec 194I
However, an individual or HUF not subject to Tax Audit preceding FY is not liable to deduct TDS
Threshold limit No deduction need be made where the amount of such income or the
aggregate of the amounts does not exceed Rs. 2,40,000
Meaning of Rent
Rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any-
Land Building Land appurtenant to a building Machinery Plant Equipment Furniture Fittings
Time of deduction Such deduction should be made at the time of credit of such income to the account of the payee
or at the time of payment of such income, whichever is earlier.
Mode of payment may be by cash, cheque, draft or any other mode
22. Applicability and Rate of TDS Every transferee responsible for paying any sum as consideration for transfer of
immovable property to a resident shall deduct tax, at the rate of 1% of such sum
Time of deduction Such deduction should be made at the time of credit of such sum to the account of the
resident transferor or at the time of payment of such sum, whichever is earlier.
Threshold limit No deduction required where the total amount of consideration is less than Rs. 50 lakhs
Non- applicability Compulsory acquisition of immovable property not covered under this Sec (Sec 194LA will apply)
Payment on Transfer of Certain Immovable Property
other than Agricultural Land - Sec 194IA
Non-applicability of TAN Requirement of obtaining TAN shall not apply to the person required to
deduct tax in accordance with the provisions of Sec 194-IA
advance
fee or any
other
charges of
similar
nature
maintenance
fee
electricity
or water
facility fee
car parking
fee
club
membership
fee
Consideration for transfer
of any immovable property
includes all charges of the
nature of :
Explanation
regarding
consideration
which are incidental to transfer of the immovable property
Expl. inserted by Union Budget 2019
23. Applicability and Rate of TDS Individual or a HUF other than those not subject to Tax Audit in the
immediately preceding FY
responsible for paying to a resident any income by way of rent
rate of 5%
Threshold limit
Time of deduction
Tax has to be deducted at source only if the amount of such rent exceeds Rs. 50,000 for a month
or part of a month during the PY
• At the time of credit of such rent to the account of the payee or
• At the time of payment thereof in cash or by issue of cheque or draft or by any other mode,
whichever is earlier.
Payment of Rent by Certain individuals or HUF - Sec 194 IB
Non-applicability of TAN Requirement of obtaining TAN shall not apply to the person required to
deduct tax in accordance with the provisions of Sec 194-IB
Requirement to furnish PAN
Sec 206 AA requires providing of PAN, failing which tax shall be deducted at a higher rate of 20%.
As per the Sec 206 AA, deduction shall not exceed the amount of rent payable for the last month
of the previous year or the last month of the tenancy, as the case may be.
24. Applicability and
Rate of TDS
Any person responsible for paying to a resident any sum by way of consideration, not being consideration
in kind, under a Joint Development Agreement, to deduct income-tax at the rate of 10%
Payment under Joint Development Agreement - Sec 194 IC
Time of deduction Such deduction should be made at the time of credit of such income to the account of the payee
or at the time of payment of such income, whichever is earlier.
Mode of payment may be by cash, cheque, draft or any other mode
Non-Applicability of
Sec 194-IA
Since, TDS under JDA is covered in this Sec, Sec 194-IA (Transfer of Immovable Property) shall not apply
Meaning of specified agreement (JDA) - Sec 45(5A)
It means a registered agreement in which a person owning land or building or both, agrees to allow another person to
develop a real estate project on such land or building or both
The consideration, in this case, is a share, being land or building or both in such project; part of the consideration may also be in cash
25. Applicability and Rate of TDS Every person, who is responsible for paying to a resident any sum by way of
Fees for
professional
services
Fees for
technical
services
Any remuneration or fees or
commission, by whatever name
called, other than Salary, to a
director of a company
Royalty
Non-compete fees
referred to in sec 28(va)c
shall deduct tax at source at the rate of 5%
However, in case of a payee, engaged only in the business of operation of call centre, the TDS will be at 2%
Time of
deduction
Such deduction should be made at the time of credit of such income to the account of the payee or at the time of
payment of such income, whichever is earlier.
Mode of payment may be by cash, cheque, draft or any other mode
Fees for Professional or Technical Services - Sec 194J
Threshold limit
No deduction required if the amount of fees or the aggregate of the amounts of fees during a FY does not exceed Rs. 30,000 in
the case of fees for professional services, fees for technical services, royalty and non-compete fees
26. Meaning of Professional services
Professional services means services rendered by a person in the course of carrying on legal, medical, engineering or architectural
profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession
as is notified by the CBDT for the purposes of Sec 44 AA or of this Sec.
Contd.
Non- Applicability
An individual or HUF not subject to Tax Audit in the immediately preceding FY is not liable to deduct tax at source
An individual or HUF shall not be liable to deduct TDS, in case such sum is credited or paid exclusively for personal purposes
Meaning of Fees for technical services Means any consideration for rendering of any of the following services:
Managerial services
Technical services
Consultancy services
Provision of services of technical or other personnel
The term does not include
Consideration for any construction, assembly, mining
Consideration which is chargeable under the head ‘Salaries’
27. Applicability The person responsible for paying to a resident any sum in the nature of
compensation or the enhanced compensation the consideration or the enhanced consideration
on account of compulsory acquisition, under any law for the time being
in force, of any immovable property (other than agricultural land)
Rate of TDS The amount of tax to be deducted is 10% of such sum
Time of deduction
The tax should be deducted at the time of payment of such sum in cash or by issue of a cheque
or draft or by any other mode, whichever is earlier
Threshold limit If the amount of such payment or, the aggregate amount of such payments to a resident during
the FY does not exceed Rs. 2,50,000 then no deduction is required
Payment of Compensation on Acquisition of Certain
Immovable Property - Sec 194LA
Non-applicability of TDS under Sec 194LA
No TDS required where payment is made in respect of any award or agreement which has been exempted from levy of income tax
under Sec 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
28. Special rate of tax on interest received by non-residents from notified infrastructure debt funds
Interest income received by a non-corporate non-resident or a foreign company from notified
infrastructure debt funds would be subject to tax at a concessional rate of 5%
Rate of TDS
The amount of tax to be deducted is 5% on interest paid/credited by such fund to a non-
resident/foreign company
Time of deduction Such deduction should be made at the time of credit of such income to the account of the payee
or at the time of payment of such income, whichever is earlier.
Mode of payment may be by cash, cheque, draft or any other mode
Income by way of Interest from Infrastructure Debt Fund -
Sec 194 LB
Applicability
29. Applicability and Rate of TDS
Certain Income From Units of a Business Trust – Sec 194 LBA
Particulars Recipient Rate
• Distributing any interest received or receivable by it from a Special Purpose Vehicle
(SPV) or
• Any income received from renting or leasing or letting out any real estate asset owned
directly by it,
• to its unit holders
Any Resident 10%
Distributing any interest income received or receivable by it from a SPV to its unit holders Any Non-resident 5%
Distributing any income received from renting or leasing or letting out any real estate
asset owned directly by it to its unit holders
Non-resident (not
being a company)
30%
Distributing any income received from renting or leasing or letting out any real estate
asset owned directly by it to its unit holders
Foreign Company 40%
Business Trust Means an Infrastructure Investment Trust or a Real Estate Investment Trust
which are listed in a stock exchange
Special Purpose Vehicle SPV is an entity through which a business trust holds real estate assets
30. Income in Respect of Units of Investment Fund – Sec 194LBB
Applicability Income distributed by an Investment Fund to its unit holder other than in the nature
of PGBP (PGBP income is taxable in the hands of the fund)
Rate of TDS Where the Payee is a:
• Resident – 10%
• Non-resident (other than company) – 30%
• Foreign Company – 40%
In case of Non-residents, TDS shall not be deducted if the distributed income is not
chargeable to tax for such person as per provisions of Income-tax
Investment
Fund
• Means any fund established or incorporated in India in the form of a Trust or a Company or
a LLP or a body corporate
• which has been granted a certificate of registration as a Category I or a Category II
Alternative Investment Fund and is regulated under SEBI Regulations
31. Income in Respect of Investment in Securitization Trust – Sec
194LBC
Applicability Income payable to an investor in respect of investment in a Securitisation trust
Rate of TDS Payee Rate
Resident Individuals and HUF 25%
Residents other than Individuals and HUF 30%
Non-resident (other than company) 30%
Foreign Company 40%
Securitisation
Trust
Means a trust, being a—
• Special purpose distinct entity as SEBI (Securitised Debt Instruments) regulations or
• Special Purpose Vehicle as defined in, and regulated by, the guidelines on securitisation of
standard assets issued by RBI or
• Trust set-up by a securitisation company or a reconstruction company formed, for the
purposes of the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002, or in pursuance of RBI guidelines
32. Concessional rate of tax on interest on foreign currency borrowings by an Indian company or business trust
To avail this concessional rate, the borrowing should be from a source outside India :
Under a loan agreement at any time between 1.7.2012 and 30.6.2020 or
By way of issue of any long-term bond, during the period between 1.10.2014 and 30.6.2020 and approved by the CG
Rate of TDS The amount of tax should be deducted @ 5%
Income by way of Interest from an Indian company - Sec 194LC
Income by way of Interest on Certain Bonds and Government
Securities – Sec 194 LD
Any income by way of interest payable during the period between 1.6.2013 and 30.6.2020 in respect
of investment made by an Foreign Institutional Investor or Qualified Foreign Investor in a rupee
denominated bond of an Indian company or a Government security, shall be subject to tax
deduction at source at a concessional rate of 5%
Applicability and
Rate of TDS
Time of deduction
Any such interest shall, at the time of credit of such income to the account of the payee or at the time of
payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier
33. Applicability and rate of TDS
For carrying out any work (including
supply of labour for carrying out any
work) in pursuance of a contract; or
By way of commission (not being
insurance commission referred to in
Sec 194D) or brokerage; or
By way of fees for professional
services
Time of deduction
The rate of deduction is at 5%
The tax should be deducted at the time of credit of such sum or at the
time of payment of such sum, whichever is earlier.
Threshold limit No TDS shall be deducted if the such sum or aggregate of such sums does not exceed Rs. 50 lakhs during the FY
An individual or a HUF responsible for paying any sum during the financial year to any resident:
Payment of Certain Sums by Certain Individuals or HUF – Sec 194M
Non-applicability An individual or a Hindu undivided family is not liable to deduct tax at source, if:
They are required to
deduct tax at source
under Sec 194C
They are required to
deduct tax at source
under Sec 194H on
commission
They are required to
deduct tax at source
under Sec 194J
Inserted by Union Budget 2019
34. Applicability and rate of TDS
every person being
a banking company
a co-operative society engaged in
the business of banking
a post office
• Responsible for paying, in cash, any sum or
aggregate of sums exceeding Rs. 1 crore
during the PY to any person,
• shall deduct TDS @ 2% exceeding Rs. 1 crore
Payment of Certain Amounts in Cash – Sec 194 N
Time of deduction This deduction is to be made at the time of payment of such sum
Non-applicability
The government
Any banking company or co-operative society engaged in carrying on the business of banking or a post-office
Any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in
accordance with the RBI guidelines
Any white label ATM operator of a banking company or co-operative society engaged in carrying on the business of banking
Such other person or class of persons notified by the central government in consultation with the RBI
In case of payments made to
Inserted by Union Budget 2019
35. Applicability and rate of TDS Sellers of certain goods are required to collect tax from the buyers at the specified rates
Nature of Goods Percentage
(i) Alcoholic liquor for human consumption 1%
(ii) Tendu leaves 5%
(iii) Timber obtained under a forest lease 2.5%
(iv) Timber obtained by any mode other than (iii) 2.5%
(v) Any other forest produce not being timber or tendu leaves 2.5%
(vi) Scrap 1%
(vii) Minerals, being coal or lignite or iron ore 1%
Specified rates
Tax Collection at Source – Sec 206 C
36. Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10
lakhs, shall collect tax from the buyer @1% of the sale consideration
Non-applicability
• No collection of tax shall be made in the case of a resident buyer furnishes to the person responsible for collecting tax,
• a declaration that the specified goods are to be utilised for the purpose of
• manufacturing, processing or producing articles or things or for the purposes of generation of power and not for
trading purposes.
Contd.
Every person who grants a lease or a license or enters into a contract or otherwise transfers any right or interest in any
parking lot toll plaza a mine or a quarry
to another person (other than a public sector company) for the use of such parking lot or toll
plaza or mine or quarry for the purposes of business
At the rate of 2%
37. Consequences of Non-compliance of TDS Provisions
Sec Nature of Default Consequence
40 (a) (i) Non deduction or non payment of TDS on interest, royalty,
FTS or any sum payable to non-residents
100% disallowance of expenditure, shall be allowed
in year of deduction
201 (1) TDS not withheld or deposited properly Deemed to be Assessee in default
201 (1A) TDS not withheld or deposited properly Interest per month or part of the month
Non-deduction - @ 1%
Non-payment - @1.5%
221 TDS withheld but not paid Penalty not exceeding tax not paid
271C Tax not withheld or short withheld Penalty not exceeding the tax not withheld
234E Failure to file TDS Return • Penalty of Rs 200 per day shall be paid by the
assessee until the time the default continues.
• Penalty not exceeding tax not paid
234F Failure to furnish TDS Returns or Furnishing of incorrect
information
Penalty of Rs. 10,000 to Rs.1,00,000