Income Tax Act 1961 Section 195 of the Income Tax Act, 1961 is a crucial provision for the taxation of non-residents in India. It focuses on the tax implications of payments made to non-residents, ensuring that taxes are deduct at source (TDS) on specific types of income earn by non-residents from an Indian… Read More »
User Intent People often wonder why Tax Deducted at Source (TDS) is deducted from their salary, professional fees, or interest income. This article provides a detailed, step-by-step guide to help you understand the concept, its applications, benefits, limitations, and comparisons with other tax collection methods. Introduction TDS, or Tax Deducted at… Read More »
Is fee paid to Non-Professional accountant subject to TDS TDS on fee of Non-Professional accountant is mandatory. The payment made to a non-professional accountant is subject to Tax Deducted at Source (TDS) as per Section 194J of the Income Tax Act, 1961. The applicable TDS rate for non-professional services is 10%, with a reduced rate… Read More »
Is TDS Deductible on Interest Due to Late Payments to Creditors? Introduction Tax Deducted at Source (TDS) is an essential part of the Indian taxation system, ensuring that taxes are collected at the point of income generation. Businesses often face situations where they make late payments to creditors, leading to interest liabilities. This raises the… Read More »
User Intent Users searching for this topic want clarity on the frequency of Tax Deducted at Source (TDS). They may be taxpayers, businesses, or financial professionals looking for compliance-related information. This guide explains whether TDS is deducted monthly or annually, explores its applications, highlights its benefits and limitations, and provides a comparative analysis. Introduction TDS,… Read More »
How to Make TDS Entries in Accountancy: A Step-by-Step Guide Tax Deducted at Source (TDS) is a critical aspect of tax compliance for businesses and individuals in many countries. It involves deducting a specified percentage of tax from payments made to vendors, contractors, or employees and depositing it with the tax authorities. Accurate TDS entries… Read More »