Table of Contents
Who is liable to register under TDS?
All Department or establishment of Centre / State Government, Local Authority, Government Agencies & Persons or category of persons notified by Central / State Government, where the total value of such supply under a contract exceeds 2.5 lakhs, need to register as a TDS under GST.
Can buyer pay TDS on property?
The buyer of the property has to make the payment of TDS. It is his or her responsibility to furnish the information regarding the immovable property transaction online on the TIN website.
Why tax payable even when TDS has been deducted?
– This could also happen because the 80C deduction is taken twice. It can only be claimed once in the year. – Banks always deduct TDS on FD interest at 10\%. If your income falls in a higher slab, you will need to pay TDS based on that slab.
Which tax is paid on hire of equipment?
Tax (TDS) Deduction Rates Rent for plant/ equipment/ machinery- 2\% TDS on the rent amount paid. Rent for land/ building/ furniture/ fittings- 10\% TDS on the rent amount paid. Individual/ HUF not liable to tax audit – 5\% TDS on the rent paid in cases where more than `50,000 is paid per month as rent.
Is TDS registration mandatory?
Ans. TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.
Why should we pay TDS?
As per the Income Tax Act, any company or a person is required to deduct tax at the source itself if the money paid exceeds a certain amount. The person who receives a payment also has a liability to pay tax. The purpose of TDS may have been to reduce the chance of evasion by the recipient of the incomes.
What kind of tax is income tax?
Taxes are mainly of two types, direct taxes and indirect form of taxes. Tax levied directly on the income earned is called as direct tax, for example Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year.
What is the difference between Deductor and tax payer?
Deductor is the person who deducts the tax at source on specified payment made by him. He is also required to report the details of tax deducted in a statement. While a GST practitioner is a person approved by the central or state government to perform activities on behalf of the taxpayer.
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