NEW CHANGES ON TDS – CHANGES IN WITHHOLDING TAX
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NEW CHANGES ON TDS:
Section 192 (2D) – TDS on Salary:
The person responsible for making the payment referred to in sub-section (1) shall, to estimate the income of the assessee or computing tax-deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including the claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed.
Now the employer is responsible to verify all the supporting documents before determining the applicable Tax liability of employees.
Applicable with effect from 1 June 2015
Section 195 – Payment to Non-Resident:
The person responsible for making the payment referred to in sub-section (1) shall, to estimate the income of the assessee or computing tax-deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including a claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed.
Now the 15 CA should be furnished for the cases even if the tax at source is not applicable
Applicable with effect from 1 June 2015
Section 194 C – Deduction of Tax on Transporter:
In section 194C of the Income-tax Act, in sub-section (6), with effect from the 1st day of June 2015, for the words “on furnishing of”, the words “where such contractor owns ten or fewer goods carriages at any time during the previous year and furnishes a declaration to that effect along with” shall be substituted.
Aslo read: TDS/ TCS provisions within the income tax Act
Now the transporter needs to provide above stated declaration along with PAN to get the payment without ant Tax Deduction
TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
| U/s | Payment Nature | Basic Limit | Applicable with effect from 14/05/2020 to 31/03/2021 | Applicable from 01/04/2020 to 13/05/2020 | |||
| Resident | Resident | Non-resident * | Non-resident * | ||||
| Rs. | TDS Rate (%) | TDS Rate (%) | TDS Rate (%) | TDS Rate (%) | |||
| 192 | Salaries | – | Normal slab rate | Normal slab rate | Normal slab rate | Normal slab rate | |
| 195 | Income of Investment made by an NRI | – | – | – | 20 | 20 | |
| 195 | Long-term capital gain
– Under Section – 115E/ 112(1)(c)(iii)/112A – Any Other Gains |
– |
– – |
– – |
10 20 |
10 20 |
|
| 195 | Short-term capital gain – 111A | – | – | – | 15 | 15 | |
| 195 | Royalty | – | – | – | 10 | 10 | |
| 195 | Fees for technical services | – | – | – | 10 | 10 | |
| 195 | Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) | – | – | – | 20 | 20 | |
| 195 | Any Other Income – Other than Company
– Company |
– | –
– |
–
– |
30
40 |
30
40 |
|
| 196A | Income in respect –
– of units of a Mutual Fund specified under clause (23D) of section 10; or – from the specified company referred to in the Explanation to clause (35) of section 10 |
– | – | – | 20 | 20 | |
| 196B | Income from units to an offshore fund | – | – | – | 10 | 10 | |
| 196C | Income from foreign currency bonds or GDR of an Indian company | – | – | – | 10 | 10 | |
| 196D | The income of Foreign Institutional Investors from securities (not being dividend or capital gain) | – | – | – | 20 | 20 | |
| 192A | Premature withdrawal from EPF | 50000 | 10 | 10 | 10 | 10 | |
| 193 | Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10000 | 7.5 | 10 | – | – | |
| 193 | Interest on securities – Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than Demat form), any other interest on securities | 5000 | 7.5 | 10 | – | – | |
| 194 | Dividends | 5000 | 7.5 | 10 | – | – | |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 7.5 | 10 | – | – | |
| 194A | Interest (Any other person) | 5000 | 7.5 | 10 | – | – | |
| 194B | Winning from lotteries | 10000 | 30 | 30 | 30 | 30 | |
| 194BB | Winning from Horse race | 10000 | 30 | 30 | 30 | 30 | |
| 194C | Contractor-Single
transaction-Individual/HUF -Others |
30000 |
0.75 1.5 |
1 2 |
– – |
– – |
|
| 194C | Contractor – Consolidated Payment During the F.Y.
– Individual/HUF – Others |
100000 |
0.75 1.5 |
1 2 |
– – |
– – |
|
| 194D | Insurance commission
– Other than Company – Company |
15000 |
3.75 10 |
5 10 |
– – |
– – |
|
| 194DA | Maturity of Life insurance policy | 100000 | 3.75 | 5 | – | – | |
| 194E | Non-resident sportsmen or sports association | – | – | – | 20 | 20 | |
| 194EE | NSS | 2500 | 7.5 | 10 | 10 | 10 | |
| 194F | Repurchase units by MFs | – | 15 | 20 | 20 | 20 | |
| 194G | Commission-Lottery | 15000 | 3.75 | 5 | 5 | 5 | |
| 194H | Commission/Brokerage | 15000 | 3.75 | 5 | – | – | |
| 194I | Rent of – Plant/Machinery /Equipment
– Land and Building/Furniture & Fixture |
240000 | 1.5
7.5 |
2
10 |
–
– |
–
– |
|
| 194IA | Transfer of certain immovable property other than agricultural land | 50 lakh | 0.75 | 1 | – | – | |
| 194IB | Rent by Individual/HUF | 50000 per month | 3.75 | 5 | – | – | |
| 194IC | Payment under Joint Development Agreements to Individual/HUF | – | 7.5 | 10 | – | – | |
| 194J | Professional Fees | 30000 | 7.5 | 10 | – | – | |
| 194J | Technical Fees (w.e.f. 01.04.2020) | 30000 | 1.5 | 2 | – | – | |
| 194J | Payment to call center operator (w.e.f. 01.06.2017) | 30000 | 1.5 | 2 | – | – | |
| 194J | Director’s fees | – | 7.5 | 10 | – | – | |
| 194K | Payment of any income in respect of
(a) units of a mutual fund as per section 10(23D); or (b) the units from the administrator; or (c) units from a specified company (w.e.f. 01.04.2020) |
5000 | 7.5 | 10 | – | – | |
| 194LA | Compensation on the transfer of certain immovable property other than agricultural land
(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017) |
250000 | 7.5 | 10 | – | – | |
| 194LB | Income by way of interest from infrastructure debt fund | – | – | – | 5 | 5 | |
| 194LBA | Income from units of business trust
– interest received or receivable from a special purpose vehicle; or – dividend referred to in sub-section (7) of section 115-O |
– |
7.5
7.5 |
10
10 |
5
10 |
5
10 |
|
| 194LBA | Distribution of rental income to unitholders
– Other than Company – Company |
– |
7.5 7.5 |
10 10 |
30 40 |
30 40 |
|
| 194LBB | Income in respect of units of investment fund
– Other than Company – Company |
– |
7.5 7.5 |
10 10 |
30 40 |
30 40 |
|
| 194LBC | Income in respect of investment in securitization fund
– Individual/HUF – Company – Other Person |
– |
18.75 22.5 22.5 |
25 30 30 |
30 40 30 |
30 40 30 |
|
| 194LC | Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India | – | – | – | 5 | 5 | |
| 194LC | Income by way of interest by an Indian specified company on rupee-denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre | – | – | – | 4 | 4 | |
| 194LD | Interest on certain bonds from Govt. securities | – | – | – | 5 | 5 | |
| 194M | Certain payments by Individual/HUF | 50 lakh | 3.75 | 5 | – | – | |
| 194N | Payment of a certain amount in cash | 1 Crore | 2 | 2 | 2 | 2 | |
| 194N | Payment of certain amount in cash (first proviso of section 194N)if-
– Amount is more than Rs.20 lakh but up to Rs. 1 crore – Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) |
2
5 |
N.A.
N.A. |
N.A.
N.A. |
2
5 |
||
| 194-O | Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020) | – | 0.75 | N.A | – | – | |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com
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