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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.

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2014
  • A new facility has been started in TDSCPC website to update declaration for non filing of TDS statement for deductors.
  • Deductors can update status of TDS/TCS statement to non-filing online after login at TDSCPC website.
  • The benefit of this facility is that instead of filing nil TDS/TCS return for a particular quarter/period, one just need to update the status to non filing of return.

2014
    • Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source (in accordance with CGA Rules and Rule 125 of Income Tax Act).
    • Your attention is drawn towards some relevant guidelines related to payment of TDS/ TCS liability.

      A. Central Government Account ( Receipts and Payments ) Rules, 1983:

2014
  • As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs).Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.Tax so deducted should be deposited to the Government Account through any of the authorised bank branches.
  • Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on this website.

2014

The CBDT has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source on the amount paid/payable without including such service tax component.


2013

Till recently TDS deductor were submitting TDS return for a Quarter even if they have not deducted and paid any TDS for a specific Quarter, called NIL TDS Return.

CBDT has now provided that -
TDS statement cannot be filed without quoting any valid challan and deductee row.
Which implies that, Nil TDS return is no more permissible.

Financial Management