KnowyourGST-Blog on Indian Tax Laws

Whether 'tips' received fall within the meaning of "Salaries" to attract TDS under section 192

In the case of ITC Ltd v. CIT (2016) 384 ITR 14, the issue under consideration before the Supreme Court was whether “tips” received by the hotel-company from its customers and distributed to the employees fell within the meaning of “Salaries” to attract tax deduc... Click to read full article

CA Ankit Sharma 16/01/2019 under Income-Tax

Mandatory requirement of furnishing PAN in all TDS statements, bills, vouchers and correspondence between deductor and deductee [Section 206AA] | AY 2019-20 onwards

The non-quoting of PAN by deductees in many cases led to delay in issue of refund on account of problems in the processing of returns of income and in granting credit for tax deducted at source. Applicability With a view to strengthening the PAN mechanism, section 206AA provides that any pe... Click to read full article

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

Furnishing of statements in respect of payment of interest to residents without deduction of tax [Section 206A] | AY 2019-20 onwards

This section casts responsibility on every banking company or co-operative society or public company referred to in the proviso to section 194A(3)(i) to prepare such statements for such period as may be prescribed – if they are responsible for paying to a resident, the payment shoul... Click to read full article

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

Person responsible for paying taxes deducted at source [Section 204] | AY 2019-20 onwards

For purposes of deduction of tax at source the expression “person responsible for paying” means: S No Nature of Income/Payment Person Responsible for Paying Tax 1 Salary (other than payment of salaries by the Central or State Government) i) t... Click to read full article

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

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