Schedule TCS – Details of Tax Collected at Source AY 2026-27 Tax Collected at Source (TCS) is the amount of tax collected by the seller in specified transactions from the buyer, licensee, or lessee. ‘Schedule TCS’ in the Income Tax Return (ITR) Form captures details of TCS. This schedule ensures that any TCS credited to… Read More »
Schedule – Verification AY 2026-27 The Verification schedule in an ITR form is a statutory declaration made by the assessee affirming the correctness and completeness of the information furnished in the return. It includes a declaration that the data provided is true to the best of the assessee’s knowledge and belief and that all income… Read More »
Taxation of Dividend AY 2026-27 Introduction Dividend income is taxable in the hands of the recipient under the head ‘Income from Other Sources’. Its tax treatment depends on the residential status of the recipient and the type of security from which the dividend arises (e.g., shares, mutual funds, GDRs, AIFs, REITs/InVITs). Meaning and Scope of… Read More »
Intimation to the Department about Payment to Non-Resident Introduction Any person making a payment to a non-resident must furnish information in Form 15CA and, in certain cases, obtain a certificate in Form 15CB from a Chartered Accountant. Form 15CA – Details of Foreign Payments Scenario Form 15CA Part to be Filed Additional Requirement Payment is chargeable to tax & ≤ 5… Read More »
Quarterly Return by Banks to Report Interest Payments Introduction Banks and certain financial institutions must file quarterly returns to report interest payments (other than on securities) made to resident individuals where TDS is not deducted. Who Must File Quarterly Returns? Banks and Co-operative Banks o If interest (other than on securities) paid to a resident… Read More »
Consequences of Failure to Deduct or Pay TDS Introduction If any person fails to deduct TDS or deducts but does not deposit it with the Government, they are deemed an assessee-in-default and are subject to interest, penalties, prosecution, and disallowance of expenses. When Is a Deductor Deemed to Be in Default? Failure to deduct TDS.… Read More »
Tax Deduction and Collection Account Number (TAN) Introduction Every person responsible for deducting or collecting tax at source must obtain a Tax Deduction and Collection Account Number (TAN) within the prescribed time. Application Process Application for TAN must be made inForm 49B. It can be filed electronically or manually with the Income-tax Department. Time Limit… Read More »
Requirement to Furnish PAN for TDS Introduction Any person receiving income subject to tax deduction at source (TDS) must furnish his Permanent Account Number (PAN) to the deductor. Failure to provide PAN results in higher TDS rates. TDS Deduction Rates When PAN Is Not Furnished General Rule (Section 206AA): TDS is deducted at the highest… Read More »
TDS Certificate Introduction A person deducting tax at source (TDS) must issue a TDS certificate to the deductee, specifying the tax amount, rate, and other prescribed details. The certificate is generated from the TRACES portal after processing the TDS statement. Types of TDS Certificates Form 16– Issued by the employer for TDS on salary (Section… Read More »
Filing of TDS Return Introduction Any person responsible for deducting tax at source (TDS) must file a quarterly statement in the prescribed format by the due date. However, for TDS deducted under Sections 194-IA, 194-IB, 194M, and 194S (for specified persons), the statement is filed monthly. Forms for Filing TDS Returns Form 24Q– For salary income (Sections 192 and 194P). Form 26Q–… Read More »