TDS on Rent Paid by Certain Individuals or HUFs Introduction As per section 194-IB, individuals and HUFs whose gross receipts or turnover in the preceding financial year do not exceed Rs. 1 crore (for business) or Rs. 50 lakh (for profession) must deduct TDS at 2% on rent payments exceeding Rs. 50,000 per month or part… Read More »

TDS on Purchase of Immovable Property Introduction When a buyer purchases an immovable property (other than rural agricultural land) from a resident seller, tax must be deducted under Section 194-IA at 1% of the sale consideration or the stamp duty value, whichever is higher. TDS applies only if the property value is Rs. 50 lakh or more.… Read More »

TDS on Rent Introduction Any person, including a specified individual and an HUF, paying rent to a resident person in respect of plant, machinery, land, building or furniture shall deduct tax therefrom. The tax shall be deducted if the rent paid or payable exceeds Rs. 50,000 per month or part of the month. Key Provisions… Read More »

TDS on Commission and Brokerage Introduction TDS under Section 194H is applicable at a rate of 2% on commission or brokerage (excluding insurance commission) if the amount exceeds Rs. 20,000 in a financial year. Key Provisions Deductor: o Any person making such payments, except individuals and HUFs. o Individuals and HUFs must deduct TDS if their business… Read More »

TDS on Commission from Sale of Lottery Tickets Introduction Tax must be deducted at source (TDS) at 2% under section 194G on commission or remuneration paid for stocking, distributing, purchasing, or selling lottery tickets if the amount exceeds Rs. 20,000 in a financial year. Key Provisions Deductor:Any person making such commission payments. Deductee:Any person engaged in the… Read More »

TDS on Payments Under National Savings Scheme Introduction Tax Deducted at Source (TDS) must be deducted on payments under the National Savings Scheme (NSS) under Section 194EE. The applicable TDS rate is 10% on the total amount (principal + interest). Applicability Deductor– Any person making payments under NSS. Deductee– Both residents and non-residents receiving NSS payouts. Rate… Read More »

TDS on Payments to Non-Resident Sports Persons Introduction Tax Deducted at Source (TDS) must be deducted on payments made to non-resident sports persons, entertainers, or sports associations under Section 194E. The applicable TDS rate is 20% plus surcharge and cess. Applicability Deductor– Any person making specified payments to a non-resident sports person, entertainer, or sports association. Deductee–… Read More »

TDS on Life Insurance Policy Payments Introduction Tax Deducted at Source (TDS) must be deducted on payments made under a life insurance policy to residents under Section 194DA. The TDS rate is 2% on the income component within the payment amount. TDS applies only if the gross payout (including bonus) is Rs. 1 lakh or more in… Read More »

TDS on Insurance Commission Introduction Tax must be deducted on payments made as insurance commission to residents under Section 194D of the Income-tax Act. The applicable TDS rate is 5% for individuals, firms, etc. and 10% for domestic companies. Applicability TDS applies to any person (individual, firm, company, etc.) making payments for soliciting, procuring, continuing, renewing, or… Read More »