TDS (Tax Deducted at Source) is calculated on the interest earned or paid on a Term Deposit within a financial year, following the guidelines set by the Income Tax Department. When your bank credits the interest to your account, TDS is deducted immediately. Here are some key...
The NRI is also allowed deduction for principal repayment under section 80C. Stamp duty and registration charges paid on purchase of a property can also be claimed under section 80C. A tenant who pays rent to an NRI owner must remember to deduct TDS at 30%. The income can be received to...
Payments such as commission on the sale of lottery tickets 5% 194G Payment in respect of compensation on acquisition of certain immovable property 5% 194LB Interest income or dividend income distributed by a business trust to its unitholders 5% 194LBA(2) Rental income paid by a business trust ...
Furthermore, TDS or deduction of tax at source is applicable to certain payments. It includes brokerage, salary, interest, professional fees, contract payments, royalty, and more. Also, TDS is applicable despite the payment mode such as credit, cash, or cheque. Update on the Budget for 2021:...
Introduction to TDS (Tax Deducted at Source) Tax Deducted at Source or commonly referred as TDS is the amount of tax deducted from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest, etc. The TDS amount is deducted at the ...
property.TDS on sale of property is applicable under Section 194-IA of the income tax law. However, buyers and sellers need not worry about TDS implications at all if the property value is up to Rs 50 lakh. On property deals involving more than Rs 50 lakh, TDS on property sale becomes...
Form 26Q is used for TDS on additional income such as interest, bonus or any other sum owed to NRI or foreigners. Note: The government deductors need to specify “PANNOTREQD” on the form. Non-government deductors have to mandatorily furnish PAN. Form 27EQ – Statement for TCS (Tax ...
Assessing Officer may impose penalty up to the amount of TDS if not deducted or remitted, in addition to interest and late fees. TDS Return Forms TDS forms depend on the income of the deductee or the type of deductee paying taxes. The TDS forms are mentioned below: ...
In case of Part Payments, Deductions should be proportionally split up with respect to the payments made and shown on the return. This process is also internally taken care in SaralTDS. E.g.: If a deduction of 1500/- is paid through two individual challans of 1000/- and 500/-, then ...
as the case may be, requesting the payer of income not to deduct any tax. These forms have to be filed in duplicate and once the bank or the post office takes them on record, the entire interest is paid to the investor without any tax deduction. Important points that one needs to ...