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
Tax Deducted At Source -TDS
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
Section 192 – TDS on salary
Employers including an individual or HUF who are responsible for paying any salary to any of their employee has to compulsorily deduct TDS from salary paid, if such salary amount is exceeding the basic exemption limit applicable to the financial year. As per section 192 of income tax act, TDS on salary has to be deducted at the time of payment to employee. TDS will not be … [Read more...] about Section 192 – TDS on 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
TDS under section 194H – Commission or brokerage
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
TDS on contracts – Section 194C of income tax act, 1961
Any person responsible for making any payment to a resident contractor for a contact to carry out any work or in connection to a contact for carrying out any work has to deduct TDS under section 194C of income tax act, 1961. Section 194C is also applicable to a sub contractor and any contractor supplying labour to carry out any work. As such, TDS has to be deducted by the … [Read more...] about TDS on contracts – Section 194C of income tax act, 1961