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: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARD :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: due date for vat payment :: empanelment :: list of goods taxed at 4%
 
 
News Headlines »
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 most important income-tax changes which will apply from April 1
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS

Higher TDS ceiling for self-employed mooted
December, 19th 2006

Architects, engineers, accountants, advertising and a host of other self-employed professionals could have something to cheer about in the Budget. The government may raise the ceiling for deduction of tax at source for these professionals, who work on project basis.

At present, the limit for deducting tax at source for professional or technical contract fee is pegged at Rs 20,000. But the government is likely to raise the limit substantially in the Budget. According to sources, the threshold was last tinkered with in 1994.

Taking into account the growth witnessed by the economy in past few years, there was a need to revisit it.According Section 194J of the Income Tax Act, 1961, if the fee for professional or technical service contract undertaken by any of these professionals is more than Rs 20,000, the contract awa-rdee has to deduct tax at the rate of 5%. Professionals covered under the rule include lawyers, engineers, medicos, architects, interior decorators, accountants those working in areas of advertising and broadcasting.

With the rise in the value of such projects in the last decade, the limits had become outdated. In addition, many of these professionals have often complained that the process of obtaining a refund from the income-tax office is time consuming.

Even in cases of zero tax liability, they are required to stand in queue at the office of assessing officers to get a certificate. Since most of these professionals work on low capital, blocked funds create problems of availability of working capital.

The limits were fixed long back and do not reflect the growth achieved by the economy in last few years. With a service tax of 12.2%, the limit of Rs 20,000 gets breached quickly. A large number of professionals would benefit if the threshold is enhanced, BSR & Co director Vikas Vasal said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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