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2014

Q 1. What is tax deducted at source?

  • For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as Tax Deducted at Source, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and the same is directly remitted to the Government by the payer on behalf of the payee.
  • The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.
  • The following illustration will explain the TDS mechanism.

2014

A (An)

  • A and AN are called indefinite articles.
  • Indefinite means not specific.
  • Use A(AN) when you are talking about a thing in general, NOT a specific thing.

Examples:

  • I need a phone. Not a specific phone, any phone.
  • Use A(AN) when talking about a thing which is new, unknown, or introduced to a listener for the first time.
  • Also use A(AN) when you are asking about the existence of something.

Examples:

  • I have a car. The car is being introduced for the first time.
  • Similarly, use A(AN) to introduce what type of thing we are talking about.

2014

Participatory Notes

  • Foreign Investments in India can broadly be classified into two categories :
    • Foreign Direct Investment (FDI) and
    • investment made by Foreign Institutional Investors (FIIS).
  • However, there are number of restrictions in place which makes it difficult for foreign money to enter Indian markets and hence many investors prefer P-Note route to park their money in India.

2014
  • There will always be fellow entrepreneurs with more funding, better connections or years of experience. One thing, however, that puts us all on a level playing field: the number of hours in a day. Figuring out how to effectively spend the 24 hours in each day is one of the most challenging parts of being a business owner.
  • When I first started out, I thought the main perk of working on my own as a publicist would be being able to do things, according to my own schedule. I didn’t have a daily routine. My schedule would just depend on my mood.
  • After about a year of functioning in this way, I realized that I needed to work during more normal business hours if I really wanted to grow my company. I decided to create a schedule and I still stick to one today. Not only did this make me feel significantly less stressed, I was getting more done in fewer hours!
2014

Finance Act, 2014 has made certain changes in Service Tax, which are applicable from 1st October, 2014. Team DYN has made an attempt to summarise these changes. These changes are:

    1. Service Tax is applicable on Radio Taxi (the abatement presently available to rent-a-cab service would also be made available to radio taxi service, to bring them on par);
    2. Advertisements in internet websites, out-of-home media, on film screen in theatres, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc. (sale of space for advertisements in newspapers, book other than business directories/yellow pages/trade catalogues would continue to be non-taxable) are leviable to Service Tax;

2014

Real Estate Investment Trusts (REITs)

  • Finance Minister Arun Jaitley, while presenting the budget for 2014-2015, said that Real Estate Investment Trusts (REITs) would soon be allowed.
  • SEBI has already announced draft regulations for REITs and is also expected to issue final guidelines in few weeks.
  • India is gearing up for a new concept called REITs.

Financial Management