What is the taxability of Gratuity under Income Tax Act 1961 of India? In the hands of a Government employee , Gratuity receipts are exempt from tax [ Section 10(10)(i) of Income Tax Act ] In the hands of non-Government employee, Gratuity is exempt subject to the limits prescribed in this regard [Section 10(10)(ii) and… Read More »
Pension : Who will issued TDS statement ( Form 16) If I receive my pension through a bank who will issue Form-16 (TDS deduction from Pension ) or pension statement to me- the bank or my former employer? Answer : The bank. Related Post Income Tax Books Income Tax Press Release Income Tax Act… Read More »
When Pension Income is not Taxable under Income Tax Act ? In following cases Pension income is exempt : i) Pension received by an individual who has been in the service of the Central Government or State Government and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other… Read More »
Is pension income taxed as salary income? Yes. Section 17(1) of Income Tax Act says : (1) “salary” includes— …. ii) any annuity or pension; [ Income Tax Act : Section 17 ] Related Post Income Tax Books Income Tax Press Release Income Tax Act 1961 Income Tax Forms Income Tax Rules 1962 Income Tax Notifications Income Tax… Read More »
I have different branches for my company, Can I file single TDS/TCS statement for every branch? Ans: NO, each branch/division of an entity will have separate TAN if it is filing separate TDS/TCS statement. However, there will be only One PAN for legal entity Related Post Income Tax Books Income Tax Press Release Income… Read More »
Can I use PAN to pay the TDS deducted into government account? No. You are required to have a separate Tax Deduction Account Number (TAN) by making an application in Form 49B with the TIN facilitation center of NSDL Related Post Income Tax Books Income Tax Press Release Income Tax Notifications Income Tax Circulars… Read More »
Is Income Tax Act applicable only to residents in India? No, Income Tax Act applies to all persons who earn income in India, whether they are resident or non-resident. Related Post Income Tax Books Income Tax Press Release Income Tax Notifications Income Tax Circulars Income Tax Instructions Income Tax Office Memorandum Income Tax Judgments Income… Read More »
What will be the consequences, if I do NOT file TDS/TCS statement within due date? There will be a levy of Rs 200.00 per day under section 234E of the Income Tax Act, 1961 from the due date till the date when statement is filed. The amount of fee shall not exceed the amount of… Read More »
What is liability under Income Tax , if property purchased from Non resident I am buying a property from a person residing in USA. Should I deduct tax while making payment? Yes, under Section 195 of Income Tax Act . In case you have any doubt regarding the amount on which TDS is to be… Read More »
Employee liability for Income Taxes if TDS not deducted by Empoyer If the employer does not deduct tax and employee also does not pay his due tax, who will be held responsible for tax payment? The ultimate responsibility to pay tax rests on the person who has earned income. If the employee deposits such tax… Read More »