Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: cpt :: TDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: due date for vat payment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

TDS doubles, if you fail to bring-up your PAN
October, 05th 2010

If you run a glance through your pay slip, you will come across something called TDS, which is tax deduction at source. In most cases, the employer deducts this amount at the time of payment of salary itself and pays the total tax amount to the government on behalf of all the employees. If you are a self- employed or practising professionals, you have to pay this amount yourself.

Tax deducted at source is one of the modes of income tax collection by the government. Under the income-tax laws, income tax at specified rates is required to be deducted while making certain payments.

The rate of deduction of tax at source on interest and rent payment is 10%. For salary payments, the employers deduct income tax at source on a monthly basis after computing income tax liability on estimated annual taxable income of the employee. Tax benefits on housing loan, investments, etc are considered while estimating annual taxable income.

If the PAN card number is not furnished to the person making payment, the rate of deduction of tax increases to 20%. However, if the actual rate of deduction on salary is higher than 20%, then the tax on salary deducted at source is at such higher rate.

The deductor issues a certificate in Form No 16 or 16A to the payee, which forms a basis for claiming credit for tax deducted while filing income tax return. One should also check his Form 26AS (which can be accessed from NSDLs website) to cross-check if the TDS amount as mentioned in Form 16 or Form 16A is tallying (tying) up with the TDS amount against the PAN card as per the income tax departments records.

If the total amount of TDS for a year is higher than your actual tax liability, a refund of excess tax deducted can be claimed by filing a return of income.

One can furnish a declaration in form 15G for non-deduction of income tax at source on interest income. Only those who expect their taxable income of the year to be below the basic exemption limit are eligible to furnish Form 15G. Non-residents cannot furnish form 15G. Senior citizens can furnish Form 15H instead of form 15G.

In other cases, an application is made to the income tax officer (in Form No 13) to issue a certificate of non-deduction of tax (or for deduction of income tax at a rate lower than the prescribed rate).

If PAN card no is not furnished, then rate of TDS doubles to 20% from 10%.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions