Drawbacks of a single member LLC The tax treatment of dividend income in India depends on the type of dividend and the total amount received during the financial year. There are two types of dividends: Regular Dividend: This refers to dividends paid out of the current year’s profits and is now taxable in the… Read More »
TDS or Tax Deducted at Source is the amount of tax that is deducted from the payment made to a resident or a non-resident by the person making the payment. The responsibility to deduct TDS lies with the person making the payment, and not the recipient of the payment. Who pays the TDS, the seller… Read More »
What is the rate of TDS deduction on dividend income Tax Deducted at Source (TDS) is a mechanism introduced by the Indian government to collect tax at the source of income. When it comes to dividend income, TDS plays a crucial role in ensuring that taxes are collected efficiently. What is Dividend Income? Dividend income… Read More »
Difference between TDS and Form-16 Difference between TDS and Form-16, Tax Deducted at Source and Form 16 are related to each other, but they are different concepts. Tax is the tax amount that is deduct by the person responsible for making the payment (the deductor), at the time of making the payment, from the income… Read More »
What is Tax Avoidance? Tax avoidance involves legally structuring one’s financial affairs to reduce tax liabilities while staying within the law. It involves using various strategies and methods to take advantage of deductions, credits, exemptions, and other provisions in the tax code to reduce the amount of taxes owed. Characteristics of Tax Avoidance: Legal… Read More »
Recurring Deposits tax deduction Recurring deposits (RDs) are a popular savings instrument offered by banks and financial institutions, allowing individuals to save a fixed amount regularly over a specified period. Many investors wonder whether the contributions made to recurring deposits are eligible for tax deductions under Section 80C of the Income Tax Act in India.… Read More »
