News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Direct Tax »
 Deadline For Filing Income Tax Return (ITR) Is Just 9 Days Away: 10 Latest Details To Know
 Direct tax committee calls for major changes to reassessment rules
 Direct Tax Code: All you need to know about govt panel's recommendations
 Completed ITR filing, what next?
 How to show your trading and F&O income in the tax returns?
 ITR forms with pre-filled investment data soon
  You might need to maintain tax returns records for seven years
 How improper investments may result into additional tax payable Income Tax Return 2019a
  Will a new direct tax law push up compliance?
 You might need to maintain tax returns records for seven years
 ITR filing: Common mistakes that could get you an income tax notice

Nature of income can determine rate of TDS charged
July, 18th 2019

Tax deducted at source (TDS) is the process of charging and collecting tax at the source of income. The TDS rate depends on several factors.

One such factor is the nature of income. For instance, there are different TDS rates for salary income, and incomes from interest earned on deposits and investments, commission, rent, brokerage, professional fees, royalty, and so on.

TDS rates also differ based on whether or not the recipient of the income has furnished the permanent account number (PAN) to the deductor. If PAN has not been provided, TDS can be charged at the rate of 20% or higher.

Residential status of the income recipient—resident individual or a non-resident individual (NRI)—can also affect the TDS rate. For instance, when an NRI sells a property held for more than two years, the buyer is liable to deduct TDS at the rate of 20%; if the property was held for less than two years, a TDS of 30% is applicable. But if the seller is an Indian resident, TDS is charged at the rate of 1% on the total value, and that too, if the property value is more than ?50 lakh.

However, the recipient of the income can make a declaration to avoid paying unnecessary TDS, if he or she falls in the lower tax bracket. Once TDS is deducted, it is the liability of the deductor to remit the collected tax into the government’s account within the stipulated time.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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