Professional Documents
Culture Documents
accrual or payment of such incomes to the payee. TDS by the seller from buyer/licencee at the time of debiting the amount to account of the buyer/licencee or the receipt of the payment whichever is earlier.
chargeable under the head salaries shall at the time of payment Deduct income tax on the estimated income of the employee under the head of salaries for the financial year.
an option to pay tax on behalf of an employee. Without making any deduction from his income, on the income in the nature of perquisites ,where are not provided for by way of monetary payment. Employer shall to deduct the tax on whole or part of such income.
under the head salaries, shall furnish to the employee a statement giving correct and complete particulars of perquisites or profits in lieu of salary, provided to him and the value thereof in :a) In relevant columns provided in form no. 16,if the amount of salary paid or payable to the employee is not more than Rs 150000, or b) In form no.12BA,if the amount of salary paid or payable to the employee is more than Rs 150000.
shall deduct interest at the prescribed rates. Tax is to be deducted at the time of:1. Payment of interest or 2. Making interest due; which ever is earlier.
the central or State Government issued by or on behalf of local authority is 10%. b. Any debentures issued by a company where such debentures are listed on a stock exchange in India is 10 %. c. Debentures are not listed on a recognised stock exchange is 10%.
exceeding Rs.2500. Interest paid or credited on 8% saving bonds 2003 issued by the central government provided the interest on such bonds does not exceed Rs.10000. Where a self declaration under form no. 15G is furnished by a particular person{sec.197A(1),(1A),(1B)}. Any interest payable on any security issued by a company , where security is dematerialised form.
a. The principal officer of an Indian company. b. A company which has made the prescribed
a. Before making any payment in cash. b. Before issuing any cheque or warrant in respect of any dividend
Rates of TDS
Payment is made to Non-company assessees:
a. Resident in India : 10% b. Non-resident in India : 30% + education cess @ 2% +
SHEC@ 1% Payment is made to company assessees: a. Domestic companies : 20% b. Foreign companies : 40% + surcharge@ 2.5% if applicable + education cess@ 2% + SHEC@ 1%.
liable to tax audit during the preceding financial year When to deduct? At the time of payment or credit whichever is earlier At what rate to deduct?
Machinery, Plant or Equipment - 2% Furniture, Land or Building - In All cases: 10%
No TDS if the amount paid or likely to be paid during the financial year does not exceed Rs. 1,20,000 in aggregate
Thank you