India Income Tax Made Simple

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Excerpt: I would like to know about TDS deductible on provision for expenses. Suppose at the end of the year, many provisions are made, say as on 31/03/09 for various payments like payments to contractors, auditors, where in normal course, TDS is applicable. In this provision case, I am simply making a provision & not crediting to a specific party. I am passing a simple entry like audit fees, labour charges etc DR to Provision for Expenses. All the provisions made as on 31/03/09 would be reversed as on 01/04/09 & all actual expenses as per actual bills…

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Excerpt: Yes, there is a  way to prevent TDS on the payment to Non Resident. It may be partial or full . The provision regarding relief from tax at source is provided in the same provision i.e section 195 of the I T Act. The scope is given under subsection 195(2) which  states that if the deductor feels that the whole amount being paid to non resident may not chargeable to tax , he/she/it can make application for appropriate  relief ot Assessing Officer. Procedure As per I T Rule 29(2) , following conditions must be satisfied before…

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Excerpt: Should a private ltd company in India has to deduct TDS on payments made to an individual, who is a foreign citizen of Holland? Prabha G, Chennai Your question is very general in nature. Section 195 of the I T Act  provides for deduction of tax at source in case of payments to non resident. It starts as under: Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this…

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Excerpt: I am a male of 60 yrs, resident, having business in Delhi. My estimated total income for FY 2009-10 is 200,000/.I have invested Rs 70,00/= in PPF. Now my taxable income is 200,000- 70000 = 130,000.  Since Rs 130,000 is below the taxable limit of Rs 160,000 this yr ,I want to invest in senior citizen scheme of post office having interest of 9% pa. Can I give them form 15 G for not deducting TDS on interest. Gopi Ram Bansal , New Delhi Form 15G is a self declaration which…