Who is responsible for TDS under Income Tax Act?
Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.
Who is liable to deduct TDS Taxguru?
Persons responsible for paying salary are liable to deduct tax on estimated salary at prescribed rate of 15\% subject to following: 1….All about Tax Deducted at Source (TDS)
| Particulars | TDS Rates (in \%) |
|---|---|
| Section 194-IB:Payment of rent by individual or HUF not liable to tax audit Note: This provision is applicable from June 1, 2017 | 5 |
What is Section 194IA of Income Tax Act?
Section 194-IA, provides that any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land) shall deduct an amount equal to one per cent of such …
What if employer does not deduct TDS?
When your employer has not paid the TDS to the income tax department, the TDS would not be available against your PAN in your Form 26AS. If you take the tax credit for this amount, you will receive a notice from the income tax department for the mismatch in the TDS claimed and taxes paid.
How do I claim TDS deducted from 194IA?
The buyer is required to present the TDS challan to the seller under form 16B. The TDS certificate will be available for download on the TRACES website. If the seller does not use the property sale for capital gains, the credit of the TDS can be claimed by the seller. TDS amount can be found in Form 16B and Form 26AS.
Is my employer responsible for paying my tax?
As an employee, your employer is responsible for paying your tax. These include employment rights, (such as rights in redundancy), and liability to pay tax and National Insurance. The self-employed are responsible for paying their own tax and National Insurance through self assessment.
What is the rule of TDS deduction?
TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5\% to 30\% which is equivalent to the applicable income tax slabs.
Why do we deduct TDS?
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
What if TDS is not deducted?
Penalty for companies for not depositing or not deducting TDS on time. The employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES. Also, the interest paid delay while depositing TDS is not allowed as an expense under the income tax provisions.
Who is liable to deduct TDs on rent under section 194-i?
Category of a person liable to deduct TDS on Rent under section 194-I of the Income Tax Act, 1961 – Section 194-I requires any person making payment of ‘Rent’ to a resident person to deduct tax at source (TDS). Any person paying Rent.
What is section 194i of TDs?
What is Section 194I? The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source. TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2020-21. The threshold limit was Rs. 1,80,000 until FY 2018-19.
What is section 194i of Income Tax Act?
Section 194I of Income Tax Act (TDS on Rent payment) provides the provision related to deduction of TDS on Rent payment to resident on use of house property, land, furniture & fixture, plant & machinery.
Who is a deductdeductee in TDs?
Deductee is a person from whom the tax is deducted. So, The total of Rent paid in our example is 12 x 25000= 300000 Which attract TDS @ 10\%. The deduction can be done at the time of making payment /crediting the income to the lesser account monthly /quarterly/ yearly @ 10 \%.
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