TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.

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Relaxation in income-tax compliances amid covid-19 outbreak

1. Payment of tax deducted at source (TDS) for the month of March 2020 into the Govt. treasury: · No change in time for payment which is 30 April 2020 · However, reduced interest rate @ 0.75% per month or part thereof would be applicable for delay in payment of tax (instead of 1.5% per month or part thereof) for deposit of taxes between 1 May to 30 June 2020

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Due date for filing income tax returns extended to 31 August

The government on Tuesday extended the deadline for filing income-tax returns for the FY20 assessment year by individuals and certain non-corporate assessees by one month to 31 August. The extension of due date was applicable to all taxpayers liable to file their tax returns by 31 July, the original due date. This applies to assessees other than corporate taxpayers and a few others, including non-corporate entities, the books of which need not be audited, said the Central Board of Direct Taxes (CBDT). Some taxpayers were reportedly facing difficulties in filing their tax returns because of various reasons, including the extension…

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Cash Credit (Receipts)-Taxable @ 83.25%

Any sum found credited in the books of the taxpayer, for which he offers no explanation about the nature and source thereof or the tax authorities are not satisfied by the explanation offered by the taxpayer, is termed as cash credit. In this part you can gain knowledge about various provisions relating to tax treatment of cash credit. Basic provisions The provisions relating to tax treatment of cash credit are given in section 68. As per section 68, any sum found credited in the books of a taxpayer, for which he offers no explanation about the nature and source thereof…

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All About TDS and TDS Rate For FY 2019-20

What is TDS? TDS stands for Tax Deduction At Source. It means that when an Individual/Organization/persons making the specified payment which are mentioned under Income Tax Act, 1961 to another person than that Person (who is making the payment) has to deduct the TDS when the amount of the payment exceeds the threshold limit. Such rates and threshold limits are mentioned under the Income Tax Act,1961. Applicability of TDS TDS is applicable on every person who is making the payment which are specified under Income Tax Act,1961 for which detail is given in the chart below. While making payment the…

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Deduction on Rent paid-Section 80GG

Deductions is respect of rents paid : Under Section 80GG, an Individual can claim deduction for the rent paid even if he don’t get HRA. Not many people are aware of this deduction Under Section 80GG. Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :- the Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act; the Individual files the declaration…

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Attention..! You may be liable to pay Tax on your EPF Withdrawal

Employee Provident Fund (EPF) is one of the most commonly used retirement cum investment scheme enacted by the Government for employees. The employer and employee, both are required to contribute an amount under this scheme at some percentage of Basic Wages, Dearness Allowance and Retaining Allowance (if any) as follow: Employee's Contribution The employee is required to contribute a minimum 12% of basic wages, dearness allowance and retaining allowance (if any). However, the employee can contribute more than 12% (by giving written Request/consent to the employer) which is also allowed as deduction u/s 80C from your gross total income. Employer's…

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TDS Liability on House Rent Payment- Section 194-IB

1. Applicable On? 1. Salaried class individual claiming HRA on personal house rent payment.       2. Small business which are not liable for tax audit u/s 44ab 2. Applicable From? This provision is applicable from June 1, 2017 3. Applicable When? Paying rent more than ₹50,000 per month. 4. Rate of TDS ? 5%  (Five per cent) of rent paid. 5. When to deduct TDS ? At the end of financial year OR At the end of agreement between landlord and tenant TDS needs to be deducted only one time in a year TAN is not required to deduct…

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Cost Inflation Index For Capital Gain Calculation

Notified Cost Inflation Index Under Section 48, Explanation (V) - Financial Year 2018-19 As per Notification no. So 1790(e)[no. 44/2017 (f. No. 370142/11/2017-tpl)], dated 5-6-2017, following table should be used for the Cost Inflation Index :- Download File: Sl. No. Financial Year Cost Inflation Index 1 2001-02 100 2 2002-03 105 3 2003-04 109 4 2004-05 113 5 2005-06 117 6 2006-07 122 7 2007-08 129 8 2008-09 137 9 2009-10 148 10 2010-11 167 11 2011-12 184 12 2012-13 200 13 2013-14 220 14 2014-15 240 15 2015-16 254 16 2016-17 264 17 2017-18 272 18 2018-19 280 Disclaimer:…

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