Central Board of Direct Tax is making every effort that the tax payer gets tax credit of all tax deducted at source. For this the system is in place that once the TDS return reflect tax payer’s PAN , the tds deducted and deposited as per TDS return is automatically given credit at the time...
Should TDS be made on forfeiture charges levied by loan creditor?
June 12, 2011 by
Akshay Mukund Page of Mumbai asks “Suppose I am a liable to deduct T D S from payments made by me to a N B F C as E M I on interest component. Now I am pre-paying loan then i am asked to pay Loan Forfeiture Charges .Am I supposed to deduct T D...
Two new info required in quarterly statement of deduction of tax from 1st April 2011
April 1, 2011 by
CBDT has notified amendment to Rule 31 and inserted tow new information to be provided by every deductor of tax in its quarterly statement of tax deduction . Readers are already told about substitution of Rule 28AA here. The new Rule is effective from 1st April 2011. Under Rule 31 , every person responsible for...
TDS Exemption: New Rule & Form 13 for Lower Deduction Certificate .
April 1, 2011 by
Getting TDS exemption or lower deduction certificate is now getting tougher as the Central Board of Direct Tax (CBDT ) has notified new Income Tax Rule 28AA , effective from 01/04/2011, for issue of lower deduction certificate u/s 197(1) of the I T Act.Under Rule 28A a person can apply for lower tax deduction certificate...
Is branch wise exemption limit for TDS allowed?
March 15, 2011 by
Income Tax Act provides for basic exemption limit for tax at source (TDS) . For example , in case of interest , it is Rs 5,000 or Rs 10,000 as the case may be , in case of professional or technical fees u/s 194I , Rs 30,000, in case of contractual payment it is Rs...
Double taxation relief : No TDS on payment to lawyer in China
February 24, 2011 by
Section 195 of the I T Act provides for withholding tax on “any sum” paid to non resident. However, where India has signed double avoidance agreement with another country , the said DTAA regulate the way tax is to withhold . The DTAA in fact really provides double taxation relief. Anil Maniar of Morbi asks WE...
How tax deductor can get refund of excess deposit of tds ?
February 12, 2011 by
Income Tax Act prior to Asst Year 2010-11 had no express provison of processing of TDS returns , as it has for income tax return. There was also no express provision under I T Act for refund of excess TDS deposited. However, section 200A of the I T Act introduced from 01/04/2010 has brought in...
Which section 194 H or 194C for TDS on payment to Clearing & Forwarding Agents ?
February 11, 2011 by
Tax at source is one of the most interpreted provisions under I T Act and therefore when it comes to deduction of tax at source on payments to Clearing & Forwarding Agents , popularly known as C & F agents , confusion remain high. One reader , Ms : Heena S. Jesani of Ahmedabad asks One...
Can excess TDS on one employee be adjusted with other staffs liabilities?
January 2, 2011 by
TDS provision is really tedious. It happens that many times excess tax is deducted from one employee and deposited by employer. However , an employer is responsible for overall tds deposits , so it is but natural that the they want to adjust the excess tds deposited in case an employee with tds liability of...
CBDT Eases Mismatch of TDS in case of ITR-1 & ITR-2
December 30, 2010 by
CBDT has issued Instruction No. 9/2010, dated 9th December, 2010 to ease the restrcition regarding credit of TDS in case ITR-1 & ITR-2. It was provided CBDT’s Instruction No. 7 dated 16-8-2010 in which it has been stated, inter alia, that in cases where the return is filed in ITR-I and ITR-2 for the A.Y....
Should the commission on basis of net profit to director suffer TDS ?
December 11, 2010 by
Income tax is complex and each provisons have words which can be interpreted in its own way. Lets us take the provison of commssion paid to directors of a company . Since, the TDS provison u/s 194 H is applicable on commission paid , the dispute arises on the payment of tds to director. Mr...
Simple TDS rate chart effective from 01/07/2010
September 30, 2010 by
TDS & TCS rates keeps changing. Therefore, for the benefit of readers , rates effective from 1st july 2010 is given below...
Monthly Subscription
Annual
Semi Annual Subscription
Quiz for CA/ICMA/CS Students
