Tag: tds

TDS on Professional Fees u/s 194J : 7 IMP points you should know

TDS u/s 194J is applicable while making payment for professional or technical fees. In this article, we will understand who should deduct TDS u/s 194J, threshold limit for ¬†deduction ¬†TDS u/s 194J, rate of TDS u/s 194J, effects of non deduction of TDS.   TDS on professional fees/ technical fees u/s 194J:   Professional fees/technical fees meaning: Professional service means legal service, medical service, engineering, architectural service, accounting service, technical consultancy, interior decoration service, advertising service or such other profession notified by the Board for the purposes of section 44AA. Royalty is also covered under section 194J. Royalty means...

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How tax deductions work : End of confusion

No one is unaware of TDS in India. However, it is necessary to know how tax deductions work when TDS is deducted from your payment frequently.In general, the total income of a person is charged on annual basis under the Income Tax Act. The amount of tax determined and to be paid as per the statutory provisions is as follow: a) Advance Tax b) Self-Assessment Tax c) Tax Deducted at Source (TDS) d) Tax Collected at Source (TCS) Tax deducted at source (TDS) How tax deductions work : End of confusion: We will understand procedure of tax deduction in...

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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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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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TDS on rent income under section 194I

TDS on rent income is applicable in day to day transactions. TDS under section 194I is applicable on payment of rent which is more than Rs. 180000 p.a. But it is not applicable in all cases. Let’s see the provision.   Rate of TDS on rent u/s 194I: There are different rates applicable for tax deduction under section 194I for rent income from different assets. TDS rate for payment to use of plant and machinery / equipment: 2% TDS rate for any other assets like building, house, vehicle, furniture, fitting etc. : 10%   Who is liable to deduct...

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