TDS on Fixed Deposit, Savings Accounts The interest income of the user is taxable under section 194A of the Income Tax Act (ITA), 1961. Banks deduct tax on fixed deposits if the interest earned on the same exceeds INR 40,000 in a year. The TDS rate will apply once the earnings go pa...
TDS Rate Chart for FY 2024-25 - TDS is applicable on various payments like contractor payments, salary, commission etc. Check out TDS rate chart for FY 2024-25 & AY 2025-26.
on services that the government specifies, and the tax is deducted by using the rates that the government specifies for a period. The rate of deduction is based on the status of the entity that receives the payment or provides the service. Statuses includeIndividual,Hindu Undivided Family(HUF)...
For instance, if your salary is ₹1 lakh per month, your expected annual income will be ₹12 lakh. If you deduct ₹1.5 lakh under Section 80C, your tax obligation at the applicable slab rate will be estimated Estimated annual income ₹12,00,000 Less: Deduction under Chapter VI A ...
Section NumberSourcePayee TypeThreshold LimitTDS Rate 192Salary PaymentIndividualBasic exemption limits as per the income tax slab rates.Rates of Income Tax in force. 193Interest on securitiesResident-10% 194Deemed DividendResident IndividualRs. 2500 each Financial year.10% ...
Check this example on how TDS work: Nature of Payment: Professional Fees Specified Rate: 10% If Mr. A (Deductor) has to make the payment of Rs. 50,000 to Mr. B (Deductee) for professional service. Then, Mr. A would apply 10% TDS on the specified salary (in this case Rs. 50,...
For example, if a company makes a payment of Rs 1 lakh to a contractor, they should deduct Rs. 10,000 (at the rate of 10% TDS) before making the full payment and pay a net amount of Rs. 90,000. Pay TDS with RazorpayX!
Late-payment of TDS: The deducted TDS by the payer should be credited to the government on every 7th day of the succeeding month in which the tax has been deducted. If the deductor fails to do so, an interest at the rate of 1.5% per month of the TDS amount subject to maximum amount...
Example of TDS on Salary Example of TDS on Fixed Deposit Key facts about TDS, Form 16, Form 16A, Form 26AS Overview of TDS are given below. Details are in our article Basics of Tax Deducted at Source or TDS The employer/bank/financial institution will deduct TDS as per TDS rate. To ...
This form shows how much TDS was taken from your salary or interest income by each deductor. All TDS is related to your PAN, so this form shows how much TDS was taken out by each deductor. PAN links to the TDS because all the reporting takes place on PAN. So, you must give your...