TDS on Interest on Securities Introduction Tax is deducted at source (TDS) at 10% under section 193 on interest payable on securities to a resident individual. The deduction is made at the time of credit or payment, whichever is earlier. Applicability of TDS Deductor:Any person responsible for paying interest on securities. Deductee:A resident recipient of interest. If… Read More »
TDS on Withdrawal from Employees’ Provident Fund (EPF) Scheme Introduction Tax is deducted at source (TDS) under section 192A on withdrawals from the Employees’ Provident Fund (EPF) if the employee has not completed five years of continuous service. TDS is deducted at 10% if the withdrawal amount exceeds Rs. 50,000. Applicability of TDS Deductor:The trustee of the… Read More »
TDS from Salary Introduction Every employer responsible for paying salary must deduct tax at source under section 192 if the salary income exceeds the basic exemption limit. TDS is deducted at the time of salary payment and is based on the estimated tax liability of the employee. Key Provisions Applicability:TDS applies to all employers, including individuals, firms,… Read More »
Invalidity of Extended Limitation and Interest Demands upon Pre-Notice ITC Reversal Facts The Trigger: The Petitioner, a GST-registered transporter, was flagged by a DGGI alert alleging that they had availed ineligible IGST Input Tax Credit (ITC) worth ₹4.40 lakhs from a supplier later deemed “non-existent.” Voluntary Compliance: Prior to the issuance of a Show Cause… Read More »
Tax Deducted at Source (TDS) Introduction Tax Deducted at Source (TDS) is a mechanism introduced to ensure a steady inflow of revenue to the Government. It mandates the payer of specified incomes to deduct tax at prescribed rates before making payments and deposit the same to the Central Government within the stipulated time. Scope of… Read More »
Taxation of Banks or Financial Institutions: Interest on Bad or Doubtful Debts Interest income on specified categories of bad or doubtful debts for public financial institutions, scheduled banks, and certain other entities is taxable in the year of receipt or credit to the profit and loss account, whichever is earlier. Entities Covered This provision applies… Read More »
Anti-Profiteering Mandate: Subsummation of Levies and the Limitation on Retrospective Interest Facts The Dispute: A consumer complaint was filed against a DTH (Direct-to-Home) operator for failing to pass on the benefits of the GST transition for the period July 1, 2017, to January 31, 2019. Tax Transition: In the pre-GST regime, DTH services were burdened… Read More »
Presumptive Taxation Schemes Under presumptive taxation schemes, taxpayers can compute their taxable income as a percentage of turnover, gross receipts, or specified amounts without maintaining detailed books of accounts. The schemes are available for both resident and non-resident assessees, covering specific businesses and professions. Presumptive Schemes for Residents Section 44AD: Businesses Eligible Assessee:Resident individuals, HUFs,… Read More »
Classification of Condenser Fans and Blowers: General Purpose Fans vs. Air-Conditioning Parts Facts The Products: The applicant, an automotive components manufacturer, produces motor-driven condenser fans and blowers. Usage Context: These assemblies are specifically intended for rooftop bus air-conditioning systems (to expel hot air from the condenser) and for use in heavy vehicle engine compartments. The… Read More »
Publication of The Social Security (Central) Rules, 2026 The Gazette of India CG-DL-E-08052026-272366 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 310] NEW DELHI, FRIDAY, MAY 8, 2026/VAISAKHA 18, 1948 MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 8th May, 2026 G.S.R. 344(E).—Whereas, the draft of the Social Security (Central) Rules, 2025 were… Read More »