TDS on payment

TDS is the abbreviation for Tax Deducted at Source. TDS is a direct taxation mechanism which was introduced to collect taxes from the source of income itself or at the time of income payout. Under this mechanism, a person liable to make payment to any other person is required to deduct tax at source from the total amount payable and transfer the balance to the recipient of such income. The person liable to make payment is called deductor while the recipient of the income is called the deductee. The deductor would deduct TDS at the time of crediting the amount to the account of the deductee or at the time of actual payment whichever is earlier. The TDS so deducted shall reflect in Form 26AS of the deductee for the relevant financial year. The deductee can take tax credit of such TDS amount at the time of filing of Income Tax Return.


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income from house property

The income earned by the assesse from a property is taxable under the head 'Income from House Property'. If an individual owns a house property, the rent received becomes taxable. This actual rent received or the notional rent is referred to as ‘annual value’ and taxable under Income Tax. However, there are several deductions allowed by the Income Tax Act, 1961 from such income from house property. Let us discuss them briefly.

Municipal Taxes:

Municipal tax is the annual amount paid to the municipal corporation of that area. Municipal taxes are to be deducted from the Gross Annual value to derive the Net annual value of the house property.
Deduction of municipal tax is allowed only if it has been borne by the owner and paid during that financial year.


Various Forms under Employees Provident Fund

EPFO is one of the world's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 19.34 crore accounts pertaining to its members.

The Employees' Provident Fund came into existence with the promulgation of the Employees' Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees' Provident Funds Act, 1952. The Employees' Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. The Act is now referred as the Employees' Provident Funds &


TDS Contractor

Section 194C of the Income Tax Act, 1961 deals with the provisions related to deduction of TDS at the time of payment to contractors/sub-contractors. According to this section any person making payment to the resident contractor (or subcontractor) for carrying out any contract (including the supply of labor) is required to deduct tax on such payment.


TDS on Salary under the Income Tax Act 1961

A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments.

Salary in common parlance means any amount paid by an employer to his employees in lieu of services rendered by them. However, the Income Tax Act, 1961 defines the term “salary” u/s 17(1) to include the following monetary as well as non-monetary payments.


type of companies in india

India has been identified as one of the fastest growing major economies in the world, its service industry being the key contributor. India is going through a phase of extraordinary economic liberation and is encouraging foreign direct investment by granting more accessibility to its massive and diverse market. For these reasons, many companies are now targeting expansion by starting their own business in India. Foreign investors can register various types of companies in India. Depending on the purpose, goals, initial investment, and the duration (short term/long term) of business, investors can decide the structure for their business.

Nowadays, entrepreneurs opt for company form of organisation and look at the scope of entering into Corporate World. Various types of companies can be formed according to the requirement of business and its activities. In this blog, we will discuss the basic types of a company in India. Let us discuss about different type of companies in India. 

Financial Management