Key Difference in TDS Section 192 Vs. Section 194J Understanding the difference between Section 192 and Section 194J is crucial for employers, consultants, tax professionals, and HR/payroll teams. Though both relate to TDS , their scope, applicability, and rates are fundamentally different. Misapplication can lead to penalties, litigation, and compliance risk. What is Section 192 …
TDS Deducted at 5% Post October 1, 2024: How Tenants Can Claim Refund for Excess Rent TDS and What Landlords Should Do? Background: TDS on Rent under Section 194IB Section 194IB of the Income Tax Act mandates that individual or HUF tenants (not liable to tax audit) must deduct TDS on rent exceeding ₹50,000 per …
CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh CBDT has notified that a 1% Tax Collected at Source (TCS) will now apply on sale of few prescribed Luxury goods valued above INR 10,00,000/-, with effect from April 22, 2025. This move expands the scope of Section 206C(1F) of the Income-tax Act, 1961, …
Overview of Section 194-IB – TDS on Rent Paid by Individuals or HUFs Applicability of Section 194-IB Any individual or Hindu Undivided Family (HUF) (not covered under tax audit under Section 44AB) who pays monthly rent exceeding ₹50,000 is required to deduct TDS @ 5% under Section 194-IB. Definition of “Rent” Under 194-IB : “Rent” …
TDS on Payments to Partners Section 194T (w.e.f. 1.04.2025) Payments Covered U/s 194T : The Union Budget 2024 introduced Section 194T, which mandates Tax Deducted at Source (TDS) on certain payments made by a firm to its partners. This provision aims to increase tax compliance and transparency in partner remuneration and other payments. The following …
Liberalized Remittance Scheme (LRS) & TCS Changes in Budget 2025 The Union Budget 2025 has introduced key adjustments that affect how Indian residents remit money abroad, particularly benefiting travellers, students, and medical tourists. Here’s what you need to know: What is the Liberalized Remittance Scheme? Liberalized Remittance Scheme: A framework that allows resident individuals to …
Steps to Claim and Rectify a Wrongly Deposited Challan This blog provides an insightful overview of rectifying a common yet specific error in income tax challan payments, particularly when a payment meant for NON-TDS/TCS (CHALLAN NO./ITNS 280) is mistakenly deposited under TDS/TCS (CHALLAN NO./ITNS 281). Here’s a more structured breakdown of the steps discussed: Understanding …
What is Form 16C? Form 16C is a certificate under the Income Tax Act that provides details of the TDS deducted on rent payments. It is specifically associated with Section 194IB, which mandates that individuals or HUFs paying rent of INR 50,000 or more per month deduct TDS at 5%. Unlike other TDS deductions that …
CBDT New Form 12BAA allows employees to inform their employers of taxes already paid on other income sources. The Central Board of Direct Taxes has introduced Form 12BAA following Budget 2024’s announcement to facilitate employees in reporting tax deductions collected from sources other than their salary. This form allows employees to inform their employers about …
Tax Deducted at Source rates chart proposed in Union Budget 2024 have been approved in the Finance Bill: Budget 2024 introduced several tax reforms & Income Tax amendments, which were ratified in the Finance Bill and became effective from Oct 1, 2024. Some of the key changes include revised TDS rates and adjustments to other …