Recently, the Kerala High Court (High Court) in the case of P V S Memorial Hospital Ltd1 (the taxpayer) held that if the tax is deductible under Section 194J2 of the Income-tax Act, 1961 (the Act) but is deducted under Section 194C3 of the Act, the disallowance under Section 40(a)(ia) of the Act is still…
If you are in the higher tax bracket, that is 20% or 30%, make sure that you pay the additional interest before filing your tax returns. The biggest disadvantage of FDs is that the interest earned is subject to taxation. This eats into the returns. Taxed as per income bracket The interest earned on the…
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…
Healthy practices for error-free TDS returns has been given below: 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…
A circular has been issued by CBDT regarding non-deposit of Tax Deducted at Source. CBDT has mentioned in the circular that as per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of…
Given below are some relevant guidelines related to payment of TDS/ TCS liability: A. Central Government Account (Receipts and Payments) Rules, 1983: Date of Receipt for Cheques or Drafts: The Central Government Account (Receipts and Payments) Rules, 1983 contain, inter alia, regulate public moneys received by or on behalf of the Government of India. As…
W. e. f. June 1, 2015, PAN & TAN application fees have been revised as under: 1. For dispatch of PAN card in India: Rs. 106 (inclusive of service tax). 2. For dispatch of PAN card outside India: Rs. 985 (inclusive of service tax). 3. For TAN applications: Rs. 63 (inclusive of service tax)
Deduct tax at source while purchasing property else, you’ll need to pay from own pocket with interest and penalty. On receiving a notice from the Income Tax Department, a client of Rajiv Jain, a chartered accountant, called him up and read out its contents. The letter asked the client, a chemical trader, to explain why…
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 quick steps to generate TDS Certificate using TDSMAN Software: In TRACES Information menu 1. Request for Form 16A / Form 16 (Part A). 2. After 2 hours, go to Download Requested files to download the file. 3. Download PDF converted Utility to create PDFs. In PDF Converter Utility provide the path of…