Contact Info
816 Jaina Tower 1 Janakpuri District Centre New Delhi 110058
Phone : (+91) 98914 84191
Email : info@csvgarg.com
TDS
TDS or tax deducted at source is a deduction made by someone while making a payment or crediting the account, whichever is early. This could be your employer, customer or even a bank paying you interest on a fixed deposit. Before making a payment to you, the payer deducts and pays tax on your behalf to the Income tax department. You can claim/adjust TDS credit while filing your income tax return against income tax payable. You can view the details of the TDS credit in Form 26AS by logging into your income tax efiling account.
TDS could be while purchasing a property, paying rent or paying a salary to any person. In such circumstances, you should know how much tax to deduct (TDS) as well as how and when to pay it to the Income Tax Department. For example, if you are a company/partnership paying professional fees of Rs 60,000, you have to deduct TDS of 10% (see details below). This means Rs 6,000 to be deducted as tax from professional fees. Alternatively, if you have purchased a flat worth Rs 60 lakhs, you have to deduct TDS at 1%. This means you have to keep aside Rs 60,000 and pay this amount to the Income Tax Department rather than to the seller.
TDS on Salary
Tax is deducted by your employer as per your income tax slab under section 192 of the Income Tax Act, 1961.This is why employers asked for investment declarations at the start of the year and investment proofs towards the end. This enables them to calculate your taxable income and applicable slab and deduct tax accordingly. If your slab is 30%, the tax will be deducted at 30% and so on.
TDS on property
Buyers of flats, houses or other property with a value of ₹50 lakhs or above have to deduct tax of 1% of the purchase value. If the seller’s PAN number isn’t provided to the buyer, tax will be deducted at 20%. The buyer does not need to obtain a TAN for this purpose. The buyer has to pay the tax deducted to the government within a period of 30 days from the end of the month in which the deduction is made accompanied by a challan-cum-statement (Form 26 QB). The person deducting the tax has to provide a tax deduction certificate to the landlord within 15 days from the due date of tax payment and submission of form 26QB.
TDS for contractors
Contractors undertaking various types of work such as construction projects for governments at different levels, local bodies or co-operative societies are subject to TDS under Section 194 C of the Income Tax Act, 1961. This can include even services such as advertising or catering. The applicable rate is 1% for individuals & HUF and 2% for entities other than Individuals & HUF (like companies/firms). If the PAN number is not furnished, the rate of deduction is 20%. Those getting payments upto Rs 30,000 in a single payment or upto Rs 100,000 in aggregate in a financial year, will not have any tax deducted under this section.
Service Advantage
TDS on rent Individuals or HUFs who are subject to tax audit are under an obligation to deduct the tax at source if the rent paid by them is more than Rs 1.8 lakhs in a financial year. The rate of deduction is 2% for the use of any machinery, plant and equipment and 10% for the use of any land, building and furniture or fittings.Adavantage:-As tax deduction takes place throughout the year, it ensures a continuing flow of revenue to the Government, It is a measure to prevent tax evasion, It helps in increasing the tax reach as it is deducted at the time of payment itself preventing the commitment of fraud.
