Income tax in India is levied on the basis of a slab system in case of Individual and HUF. Slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. These slab rates are different for different categories of taxpayers. In case of other type of tax payers flat tax rate is applicable on the total income. However, applicability of slab and rate of tax may differ depends on the type of person. Finance Minister has kept the income-tax rates unchanged with minute changes in surcharge rates.



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 Provisions of TDS on Income earned by Non Residents in India Blog Post

TDS on Payments to Non-Residents [Section 195]:

Applicability of the Section:

  • Section 195 of the Income Tax Act, 1961 lays down provisions for tax deductions from payments made to Non-Resident Indians (NRIs).
  • This section focuses on tax rates and deductions on daily business transactions with a non-resident.
  • Any amount generated through these business transactions is chargeable under Income Tax Act, 1961. Such amount may or may not be income or profits. The certificate for remittance is compulsory.


TDS on Cash Withdrawalu s 194N

Keeping in mind the blueprint of the cashless economy, the BJP-led government is frequently introducing reforms in the laws to achieve the goal. Starting with demonetization, the government has come up with new laws in the constitution which fulfill the purpose of the cashless economy in the nation. Section 194N recently invited in the constitution is yet another move towards promoting digital payments and eradicating cash transactions. The section concentrates on imposing TDS on cash withdrawal exceeding certain threshold limits.

The section serves the objective of eliminating large cash withdrawals from bank accounts and phasing out black money from India. Mentioned below is the detailed scrutiny of the section to give you an idea of its functionality.


All you need to know about Form 15G 15H Blog Post

Fixed Deposits with Banks and Post office are often preferred investment option for many. Especially, this instrument is most popular among senior citizens and a large chunk of middle class people in India. Banks deduct TDS on interest income when the limit crosses the threshold of ₹40,000 in a financial year under Section 194A of the Income Tax Act. The amount is set at ₹50,000 for senior citizens. However, if you an Individual taxpayer with total income below the tax limit you can prevent banks from deducting TDS on interest by submitting Form 15G or Form 15H. Here, the availability of two forms often confuses individuals as to which one is applicable to them. That is why a comprehensive knowledge regarding the difference between 15G and 15H is essential to help individuals choose the right form. 


A Brief Note on Cost Inflation Index CII for FY 2021 22 AY 2022 23 Blog Post 1

The price of a product increases overtime, and this brings down the purchasing power of money. The phenomenon of a reduction in the value of money, which leads to an increase in an individual’s cost of living, is known as inflation. The Cost Inflation Index is basically a tool which measures the effect of inflation on the value of money over a period of time.Cost Inflation Index (CII) is used to estimate the increase in the prices of goods and assets year-by-year due to inflation.The Central Government fixes this index and publishes it in its official gazette for measuring inflation. Section 48 of the Income Tax Act, 1961, defines the index as notified by the Government every year.

Under Income Tax the CII is used to adjust the cost of the capital asset over a period of time due to inflation. The value of capital asset derived by using CII is known as the inflation adjusted purchase price of assets. The capital gain is computed by taking into consideration the adjusted price of the capital asset.


TDS on Professional or Technical ServicesSection 194J Blog Post

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.

One of the most important and common type of payments that a business entity makes is towards professional fees or fees for technical services. Some illustrative examples of professional fees are fees paid to a lawyer, doctor, engineer, architect, chartered accountant, interior decorators, advertisers, etc. Technical services would include the rendering of managerial, technical or consultancy services. Such payments made to residents are covered under section 194J.

Financial Management