Form 15G / Form 15H : Detailed guide

April 2015 is running and you may be asked by your banker to submit form 15G or Form 15H. You can download this form here. In this article I will explain you – how to fill form 15G or form 15H correctly? and who should submit form 15G or form 15H to bank for non deduction of TDS? Let’s start. Meaning of form 15G / form 15H: Form 15G or form 15H is submitted to requrest income provider for not deducting income for prescribed income. In that form, declaration maker declares that his estimated taxable income for the same...

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Small service provider exemption : Detailed guide

Service tax providers has small relief via small service provider exemption. Last update for it is in  via notification no. 33/2012- ST dated 20/6/2012 ( small service provider exemption notification). Service providers whose value of taxable services does not exceed Rs. 10 lakhs in previous year can avail exemption scheme for small service provider. Small service provider exemption history: In notification no. 6/2005, dated 1/3/2005, the government has granted small service provider exemption when service turnover does not exceed Rs. 4 lakhs. This limit has been increased with time passed. Recently it is Rs. 10 lakhs. We can see through following table history of small service provider history. Applicable fromRate of service taxNotification 1/4/20054 lakhs6/2005 dated 1/3/2005 1/4/20078 lakhs4/2007 dated 1/3/2007 1/4/200810 lakhs8/2008 dated 1/3/2008 1/7/201210 lakhs33/2012 dated 20/6/2012 Small service provider meaning: Small service provider means taxable value of service provided during the previous financial year does not exceed Rs. 10 lakhs.  Small service provider exemption limit: Small service provider can get exemption up to aggregate value of taxable services up to Rs. 10 lakhs. When turnover of taxable services exceeds Rs. 10 lakhs, service provider is required to charge and pay service tax. We can understand if from below table. Aggregate value of taxable services provided for previous yearAggregate value of taxable services provided for current yearService tax applicable Less than 10 lakhs or 10 lakhsLess than...

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When will new service tax rate 14% be applicable

After budget 2015 , the common question asked to me by various blog readers, when will new service tax rate 14% be applicable? That’s why I have written this post.The new rate will be applicable from 1st June, 2015. Applicability of new service tax rate 14% after budget 2015: I can understand worry of service tax payers about new service tax rate. Let me clear that new service tax rate will not be applicable from 1st April, 2015. When we read the amendment of section 66B, it reads as under, [su_quote]106. In section 66B of the 1994 Act, with...

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TDS rate chart for FY 2015-16 ( AY 2016-17)

TDS compliance is necessary for deductor to avoid high penalties and interest. I have presented here latest TDS rate chart for FY 2015-16 (AY 2016-17) covering amedment in budget 2015. Deduct the TDS as per chart and deposit within due date.       TDS rate chart for fy 2015-16 ( ay 2015-16):   SectionNature of paymentWhen to deduct - minimum payment (Threshold limt)Threshold limit (minimum amount exceeds to deduct TDS)TDS rate 192SalaryWhen net estimated salary exceeds the basic tax free limit as per income tax slabAs per income tax slab 192APayment of accumulated balance of PF, 1952 to employees ( wef - 1/6/15)At the time of payment30,00010% 193Interest on securites*Credit or payment whichever is earlier5,00010% 194DividendBefore making payment to shareholders ( other than dividend u/s 115-0)20% 194Ainterest other than interest on securites#Deduction is required when amount credited or payment whichever is earlier. 5,000, For banks- 10,000 10% 194BWinning from lottery, crossword puzzles, card games, tv game show at the time of payment5,00030% 194BBWinning from horse racesAt the time of payment2,50030% 194C**payment to contractor / subcontractorAt the time of credit or payment whichever is earlier, 30,000 - single payment, 75,000- total annual payment1% when payee is individual/ HUF, 2% when payee is other than Individual/ HUF 194Dinsurance commissionPayment or credit whichever is earlier 20,00010% 194DAPayment under life insurace policy (including bonus)At the time of payment1,00,0002% 194HCommission/ brokeragePayment or credit...

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