Background The Income-tax Act, 1961 (the Act) provides exemption from tax in respect of allowances granted by an employer to its employees in order to meet specific expenses to the extent actually incurred. In case the allowances are not spent for the specific purposes or are not fully spent, then such unspent portion is taxable…
Central Board of Direct Taxes (CBDT) has issued a circular regarding Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements. The issued circular has been given below: Circular No. 05/2016 F.No.275 /06/2016-IT(8) Government of India Ministry of Finance Department of Revenue Central…
Central Board of Direct Taxes (CBDT) has issued a circular regarding Tax Deduction at Source (TDS) on payments by broadcasters or television channels to production houses for production of content or programme for telecasting. The issued circular has been given below: Circular No. 04/2016 F.No.275/07/20 16-IT(B) Government of India Ministry of Finance Department of Revenue…
The Madras High Court today ordered status quo on an Income Tax circular stating that salaries of nuns and priests working as teachers are not exempted from Tax Deduction at Source (TDS). Justice R. Mahadevan ordered the status quo for two weeks on the circular issued by the Principal Chief Commissioner of Income Tax, passing…
TDS on recurring deposits makes investors either submit the exemption forms if there is no taxable income. In case of TDS on RD, they may have to revisit their tax calculations and accordingly pay tax. The provisions for the applicability of the tax deduction at source (TDS) for recurring deposits are now into the implementation…
Recently, the Bangalore Bench of the Income-tax Appellate Tribunal (the Tribunal) held that there is no scope for the tax deduction at source (TDS) at a higher rate of 20 per cent as per the provisions of Section 206AA of the Income Tax Act, 1961 (the Act) when the benefit of tax treaty is available…
Though there is a provision to deduct tax at the source of income, one must assess this tax position. Despite TDS, one may have to pay tax, if his tax rate is higher than the rate of TDS. One may also claim tax refund if TDS rate is higher than his tax slab rate. There…
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)
The interest is to be calculated as per illustrations below: Case 1: Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July) The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also…
The Income Tax Department has released the following new File Validation Utilities: FVU version 4.6-For statement pertaining to FY 2010-11 onwards. FVU version 2.142-For statements pertaining to FY 2007-08 to FY 2009-10. These two FVU versions are mandatory with effect from April 21, 2015. Click here to view the key features of FVU version 4.6….