tds | Tax Masala

11 common TDS Errors and their solutions

Posted by CA Tarannum Khatri | Dec 12, 2016 | income tax, tds, Uncategorized |

It is time consuming to solve TDS errors while filling TDS return. In this post, we have given most common TDS errors and their solutions. Most common TDS Errors and their solutions: Tax Deducted at Source (TDS) in India is a tax collection method. In simple terms it is rate prescribed which is mandatory to be deducted and paid by the persons responsible for making payments. A person responsible for deducting and paying TDS has to make the below mandatory compliance. TDS payment has to be made for each month: by 7th of following month & File TDS return...

TCS on Cash Sale: 11 Important Points to KNOW

Posted by CA Manas Arora | Aug 1, 2016 | Budget, income tax, tds |

Tax collected at source on cash sale ( TCS on cash sale) under section 206C is effective from 1st June, 2016. Here are the most important points related to TCS you should consider while doing sale or purchase transactions. Meaning of TCS on cash sale: ( Section 206C) TCS is covered under section 206C of income tax act,1961 TCS is short form of tax collection at source A sum equal to the statutory percentage of purchase price is collected by the seller/collector from buyer/lessee/payee.Every person,being seller,shall collect tax at source from the buyer of goods specified in section 206C...

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

Posted by CA Tarannum Khatri | Feb 26, 2016 | income tax, tds |

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...

How tax deductions work : End of confusion

Posted by CA Tarannum Khatri | Oct 5, 2015 | income tax, tds |

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...

Section 194IA: TDS on transfer of immovable properties

Posted by CA Tarannum Khatri | Sep 21, 2015 | income tax, tds |

Section 194IA has been introduced in the Income Tax Act, 1961 (ITA) w.e.f. 01.06.2013 which prescribes rules regarding TDS on transfer of immovable properties ( other than agricultural land). A) Widening of Tax Base and Anti-Tax Avoidance Rules Background There is a statutory requirement under section 139 A of the Income Tax Act to quote the Permanent Account Number (PAN) in documents pertaining to purchase or sale of Immovable Properties for value of Rs. 5 Lakhs or more. However, during the financial year 2011-12, the information furnished by the Registrars and sub-registrars under the Annual Information Report for purchase...