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: VAT RATES :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: empanelment :: cpt :: list of goods taxed at 4% :: TDS :: due date for vat payment :: ACCOUNTING STANDARD
 
 
News Headlines »
 Income-tax (17th Amendment) Rules, 2017
 GST: One nation, one market, one tax
 Ready or not, businesses brace for biggest-ever tax reform
 Ready or not, businesses brace for biggest-ever tax reform
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules

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