KnowyourGST-Blog on Indian Tax Laws

Common number for TDS and TCS [Section 203A] | AY 2019-20 onwards

Persons who are required to apply for TAN Persons responsible for deducting tax or collecting tax at source should apply to the Assessing Officer for the allotment of a “tax-deduction and collection-account number”. Documents/Certificates/Returns/Challans on which TAN should be ... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

What if TDS is not deducted or paid [Section 201] | AY 2019-20 onwards

Deemed assessee-in-default The following persons shall be deemed to be an assessee in default if they do not deduct the whole or any part of the tax or after deducting fails to pay the tax - any person including the principal officer of a company, who is required to deduct any sum in acc... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

Duties of Person deducting income tax [Section 200] | AY 2019-20 onwards

Payment of tax deducted The persons responsible for deducting the tax at source should deposit the sum so deducted to the credit of the Central Government within the prescribed time [Sub-section (1)]. Further, an employer paying tax on non-monetary perquisites provided to employees in acc... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

Credit for tax deducted at source [Section 199] | AY 2019-20 onwards

Tax deducted at source in accordance with the above provisions and paid to the credit of the Central Government shall be treated as payment of tax on behalf of the- person from whose income the deduction was made; or owner of the security; or depositor; or owner of property; or ... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

NO TAX DEDUCTION IN CERTAIN CASES [SECTION 197A] | AY 2019-20 onwards

No deduction of tax on dividends and NSS payments [Sub-section (1)] This section enables an individual, who is resident in India and whose estimated total income of the previous year is less than the basic exemption limit, to receive dividends and any sum out of National Savings Scheme Acco... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

Certificate For Deduction OF Tax At a Lower Rate [Section 197] | AY 2019-20 onwards

Applicability This section applies where, in the case of any income of any person or sum payable to any person, income-tax is required to be deducted at the time of credit or payment, as the case may be at the rates in force as per the provisions of sections  - Salary (Section 192) ... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

TDS on Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations [Section 196] | AY 2019-20 onwards

No deduction of tax shall be made by any person from any sums payable to - the Government; or the Reserve Bank of India; or a corporation established by or under a Central Act, which is, under any law for the time being in force, exempt from income-tax on its income; or a Mutual... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

Non-applicability of TDS provisions on payments made to Corporations whose income is exempt under section 10(26BBB) [Circular No.7/2015, dated 23-04-2015]

The CBDT had earlier issued Circular No.4/2002 dated 16.07.2002 which laid down that there would be no requirement for tax deduction at source in respect of payments made to such entities, whose income is unconditionally exempt under section 10 of the Income-tax Act, 1961 and who are statutorily ... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

TDS on other sums (payable to non-residents) [Section 195] | AY 2019-20 onwards

Applicability Any person responsible for paying interest (other than interest referred to in section 194LB or section 194LC or section 194LD) or any other sum chargeable to tax (other than salaries) to a non-corporate non-resident or to a foreign company is liable to deduct tax at source at th... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

TDS on Interest on Government securities or rupee-denominated bonds of an Indian company payable to a Foreign Institutional Investor (FII) or a Qualified Foreign Investor (QFI) [Section 194LD] | AY 2019-20 onwards

Applicability and Rate of TDS Section 194LD provides that any income by way of interest payable during the period between 1.6.2013 and 30.6.2020 in respect of investment made by an FII or QFI in a rupee denominated bond of an Indian company or a Government security, shall be subject to tax ded... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

TDS on income by way of interest from an Indian company [Section 194LC] | AY 2019-20 onwards

Concessional rate of tax on interest on foreign currency borrowings by an Indian company or business trust Interest paid by an Indian company or business trust to a foreign company or a non-corporate non-resident in respect of borrowing made in foreign currency from sources outside India betwe... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax

TDS on Income by way of interest from Infrastructure Debt Fund [Section 194LB] | AY 2019-20 onwards

Special rate of tax on interest received by non-residents from notified infrastructure debt funds Interest income received by a non-corporate non-resident or a foreign company from notified infrastructure debt funds set up in accordance with the prescribed guidelines would be subject to tax at... Click to read full article

CA Ankit Sharma 15/01/2019 under Income-Tax