Credit for Tax Deducted at Source (TDS) Introduction Credit for tax deducted at source (TDS) is available to the person from whose income the tax has been deducted. However, credit is allowed only if the deductor deposits the tax with the Central Government. Eligibility for TDS Credit General Rule TDS credit is granted to the… Read More »
Non-Deduction of Tax Introduction Tax is not required to be deducted on certain payments if either the payer is a specified institution or the recipient submits a self-declaration for nil TDS. Eligible recipients must file Form 15H (for senior citizens) or Form 15G (for others). Eligibility for Filing a Declaration: A declaration can be filed for the following provisions… Read More »
Certificate for Lower Deduction of Tax Introduction An assessee can apply to the Assessing Officer for a certificate permitting nil or lower tax deduction at source (TDS) if their estimated tax liability justifies a lower rate. Eligible Applicants Any person, including residents, non-residents, individuals, firms, and companies, can apply for this certificate. In some cases,… Read More »
TDS on Income Payable to Foreign Portfolio Investors (FPIs) or Specified Funds Introduction TDS must be deducted under section 196D on income from securities (excluding interest on rupee-denominated bonds, government securities, or municipal debt securities) payable to Foreign Portfolio Investors (FPIs) or Specified Funds. Key Provisions Deductor:Any person making payments related to: o Income from securities held… Read More »
TDS on Income from Bonds or GDRs Introduction TDS must be deducted under section 196C on interest, dividends, and long-term capital gains paid to non-residents for Bonds or Global Depository Receipts (GDRs) purchased in foreign currency. Key Provisions Deductor:Any person making payments related to: o Interest or dividend on Bonds or GDRs. o Long-term capital gains (LTCG)… Read More »
TDS on Income from Units Purchased in Foreign Currency Introduction Section 196B provides that TDS must be deducted on income from units purchased in foreign currency or long-term capital gains from their transfer when paid to an offshore fund. Key Provisions Deductor:Any person making payments for: o Income from units purchased in foreign currency. o Long-term… Read More »
TDS on Income from Units (Non-Resident) Introduction Section 196A provides that TDS must be deducted at 20% on income paid to a non-resident or foreign company from units of mutual funds or a specified company. Key Provisions Deductor:Any person making payments related to: o Units of a mutual fund specified under Section 10(23D). o Units from a… Read More »
No TDS on Payments to Specified Institutions Introduction No TDS is required on interest, dividends, or other income payable to specified entities, including the Government, RBI, Mutual Funds, and other tax-exempt bodies. Key Provisions Deductor:Any person making payments of interest, dividends, or other income. Deductee:The following entities are exempt from TDS: o The Government o… Read More »
Refund of TDS deducted under Section 195 Introduction A deductor may claim a refund of TDS deducted under Section 195 on any income (other than interest) by filing an application under Section 239A before the Assessing Officer if no tax was required to be deducted on such income. Eligibility for Refund under Section 239A The following conditions must be met:… Read More »
TDS on Payments to Non-Residents Introduction As per section 195, tax must be deducted at source (TDS) on interest or any other sum paid to a non-resident (excluding salary) at the rates prescribed by the Finance Act. Key Provisions Deductor:Any resident or non-resident making payments to a non-resident or foreign company. Deductee:Non-residents or foreign companies receiving… Read More »