What is the new rule for TDS deduction?
Under the new section 194Q inserted through Finance Act, 2021, a buyer will have to deduct TDS at 0.1 per cent of amount exceeding Rs 50 lakh at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier.
In which case TDS will not be deducted?
But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited. However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit.
What is the minimum amount to deduct TDS?
When is TDS Deducted under section 192
Age | Minimum income |
---|---|
Resident in India below 60 years | Rs 2.5 lakh |
Senior Citizens between 60 years and below 80 years | Rs 3 lakh |
Super Senior Citizens above 80 years | Rs 5 lakh |
Is TDS certificate mandatory?
Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees. These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers.
What is the new TDS rules from 1st July 2021?
For the purpose of the threshold limit, one has to consider the purchases made during April-June, 2021 also, i.e., the whole financial year. But the TDS liability will arise on the purchase amount booked or paid on or after 1st July 2021, in excess of Rs 50 lakhs.
What are the rules for TDS?
The taxpayers who have TDS / TCS more than Rs 50,000 in the last two years but have not filed income tax returns, the rate of TDS shall be double the specified rate or 5% whichever is higher. – New section 194Q is introduced to levy TDS of 0.1% on a purchase transaction more than Rs. 50 lakh in a year.
Is Form 16 mandatory if TDS not deducted?
The employer or the entity that deducts your Tax Deducted at Source (TDS) is legally bound to issue Form 16 by May 31. Employees with an income of less than Rs. 2,50,000 for the Financial Year, are exempted from income tax. Hence, if no tax has been deducted, Form 16 will not be issued to them.
Is TDS applicable on foreclosure charges?
Foreclosure charges or prepayment charges are an allowable deduction and the same duly comes under the purview of the definition of interest as given under section 2(28A) of the Income Tax Act, 1961. 1.
Can TDS be refunded?
Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer’s income like salary, interest from bank accounts, rent etc. If the TDS collected is more than what you owe to the government, you can get a TDS Refund.
Which is the Supreme Court case on TDs?
In a case Shree Choudhary transport company Vs Income Tax Officer, the Supreme Court held that the individuals must deduct TDS on payments to contractors even in the absence of a contract. In CIT vs. Nova Nordisk Pharma India Ltd, the court held that the payment is compulsory even if the raw materials supplied from foreign country.
What kind of Legal Services does TDs provide?
TDS acted for NetSet and provided a wide-range of services including corporate and commercial law (mergers and acquisitions), intellectual property law, real estate law, labour and employment law, and tax law. The transaction and investment in Manitoba was the largest in Xplornet’s history.
Is there a limit to the number of TDs you can pay?
The threshold limit is 10,000 in case the TDS payer is a bank or any banking institution, banking co-operative society, and the post office.5,000 in any other case and the TDS rate 10%. According to Section 194A of the Income Tax Act 1961:
What does TDs stand for in income tax?
TDS is simply an indirect method of collection of the tax that combines the concepts of “pay as you earn” and “collect as it earned”. It is deducted before making payments on specified items such as salary, commission, rent, etc if the total amount exceeds the threshold limit.