Provident fund withdrawals before five years of completion of service will now attract income tax ranging between 10 per cent and 34.608 per cent. A new provision in the Finance Act, 2015 that becomes effective from June 1 has mandated that premature withdrawals of retirement savings that exceed Rs 30,000 before completion of five years…
Section 194C of the Income Tax Act, 1961 states that any payment to a transporter is subject to a Tax Deduction at Source (TDS) at the rate of: –1% in case if the payee is an Individual or a Hindu Undivided Family (HUF), and –2% in case of other payees (i.e. partnership firm, company, trust,…
Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS: 1. Deduct Correct TDS while making payment as required by law Deduct tax at higher rate in case valid and correct PAN of deductee is not available with you Failure to deduct /collect tax at source shall result…
Below are the important information regarding TDS Certificates which deductors should take care of: Deductors who have deducted TDS and have not deposited the same by the due date, must do so immediately. All deductors must register themselves at https://www.tdscpc.gov.in (TRACES Portal) TDS certificate in Form 16A and part A of Form 16, containing 7…
What is Online Correction? TRACES has provided the functionality of “Online Correction” where deductor can perform correction of TDS/TCS statements online. Following are the various facilities available through online correction: View default summary Rectifying challan mismatch cases Addition of new challan to the statement Pay 220/interest/levy Add or Delete Salary Detail Rectifying statement challan information…
Rejection reasons pertaining to salary details are as follows: In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement Salary detail record on which correction is filed does not exist in the regular / previous return In case…
Rejection reasons pertaining to deductee details are as follows: In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited Updation / deletion on deductee record…
Fees and Penalty for Late Filing of TDS Returns are as follows: Section 234E-Levy of Fees Failure to submit e-TDS Statement on time will result in fees on the deductor. If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as…
The following are the basic principles of TDS compliance: Deduction/ Collection of Tax at Correct Rates Timely Deposit of Tax Deducted at Source Accurate Reporting of data related to tax deductions/ collections made Submission of TDS Statements within the due dates Verification and Issuance of TDS Certificates within time CPC (TDS) is now sending “Intermediate…
What is view TDS / TCS credit? This is a facility which can be availed by deductor in order to verify whether the PANs for which user is deducting TDS are getting the credit for the same or not. This feature is available for only those PANs for which TDS / TCS statement has been…