TDS is deducted on a property belonging to an NRI in two cases: on sale and when the employee rents the property. The buyer is supposed to deduct TDS @20% on the sale of a property that belongs to an NRI. If the property is sold before the completion of 2 years, the buyer is liable to deduct a TDS of 30% on the sale of the property. In the case of rent, the tenants who have occupied an NRI's property and paying rent on it must deduct TDS @31.2%, submit it to the Income Tax department, and file Form 15CA.

TDS is a tax in which an amount is deducted on certain payments like salary, rent, commission, professional fees, and interest. The person making the payment has to deduct the tax, and the person receiving the payment is liable to bear the tax. This reduces the possibility of tax evasion as the tax is deducted right at the source of payment. TDS is deducted as per the rates specified in the Income Tax Act. The rates may vary depending on the type of service and products.

Yes, the Income Tax Department has specified certain threshold limits or minimum limits under which TDS is not required to be deducted. In other words, if the payment amount is less than the threshold limit specified for that purpose, the payer is not responsible for deducting TDS, and the receiver is not liable to pay it. However, the threshold limit has been listed under multiple sections under the Income Tax Act and varies based on the payment type.

Yes, a payee can approach the payer or the TDS deductor and request them to make the payment without deducting Tax at source. Although this is only possible if the total annual income of the payee after including the income on which TDS is being deducted is less than the basic exemption limit. In other words, if the total annual income of the payee from all the sources does not fall under the taxable bracket, the payee can request the payer not to deduct TDS. The payee must file Form 15G or 15H to request non-deduction of TDS. Form 15G: It is applicable to individual or any other person (except a firm and company) Form 15H: It is applicable to the request filed by senior citizens.

The payer deducts the TDS as per the applicable rates as mentioned in the Income Tax Law. If you want to know the amount that was deducted as tax at source by the payer, you can do the following - · You can also ask the employer or the deductor to furnish a TDS certificate in respect of the amount of TDS deducted by him/her during the year. · Log in to the government's website or portal for Income Tax and download and view Form 26AS. This form contains details about all the TDS deducted in the previous year. · You can also use the 'View your tax credit' facility available at the official website of the Income Tax Department India.

Under section 206AB, the tax is deducted at higher rates as per this provision provides the following conditions are satisfied: · The deductee should not have filed the Income Tax Return for the assessment years or in the year immediately preceding the previous year in which tax is to be deducted. · As per section 139(1), the due date to file the Income tax Return has expired, and · The aggregate amount of tax collected or deducted should be equal to or more than Rs.50,000 in the previous years. Tax should be deducted at higher rates for every income or amount on which tax is deductible under the provisions of Chapter XVII-B except the following - A non-resident who doesn't own a permanent establishment in India or a person who doesn't have to furnish income return and is notified by the central government.

Sometimes, the TDS deducted by the payer is not reflected in Form 26AS. There can be various reasons for such non-reflection of TDS amount in 26AS like - · The payer forgets to file the TDS statement · Providing incorrect PAN details of the deductee in the TDS statement filed by the payer. If such a thing happens and the TDS deducted is not reflected in 26AS, the payee must contact the payer and ask them to identify the correct reason for such an error. If the taxpayer has proof of such deduction, he/she can claim a TDS credit manually at the time of ITR filing. The taxpayer can approach the deductor and ask them to file a revised TDS return or file a grievance to the concerned authority

If you do not have a PAN, you cannot furnish Form 15G/15H for non-deduction of TDS from interest. In this case, the bank will deduct TDS at the higher of the following rates: · The rate specified in the relevant provision of the Act. · The rate or rates in force, therefore, the rate prescribed in the Finance Act. · The rate of 20%. For example, if you are a resident individual below the age of 60 and your interest income is more than Rs. 10,000 in a year, the bank will deduct TDS at the rate of 20% even if you do not have a PAN. You can apply for a PAN card online or at the nearest PAN card issuing authority. Once you have your PAN card, you can submit Form 15G/15H to the bank to request that no TDS be deducted from your interest income

The Tax collected at source is regulated by the Income Tax Department of India. A specific percentage of tax is deducted by the payer at the time of the transaction made to the receiver, and the deducted amount is then deposited to the government. And if you fail to deposit TDS to the government within the stipulated time limit, you will face adverse consequences such as interest, penalty, and rigorous imprisonment of upto seven years. I.e., it is not recommended to use TDS for personal use instead of depositing it to the government. Everyone should comply with the income tax provisions and pay taxes on time

Yes, you can claim TDS in your return of income even if you have not received the TDS certificate from the deductor. You can verify the amount of tax deducted at source from your income by checking your Form 26AS, which is a consolidated statement of all TDS transactions. You should claim the TDS credit in your income tax return based on the amount reflected in Form 26AS and not on any other document or source. You should claim TDS with your income tax return file, as the TDS credit is being reflected in Form 26AS. If there is a mismatch between the TDS credit in Form 26AS and the TDS claim in your return of income, the tax authorities may reject your claim

Section 194-IA of the Finance Act 2013 mandates the deduction of tax at source from the payment of sale consideration of immovable property (excluding rural agricultural land) to a resident seller. The deduction rate is 1% of the total amount. This provision is not applicable if the seller is non-resident or the consideration is less than ₹50 lakh. If the seller is a non-resident, then the tax will be deducted under section 195 of the Income Tax Act and not under section 194-IA. I.e., if the property is purchased from a non-resident, then section 195 will be applicable instead of 194-IA

The remuneration paid to a company director is related to different provisions of TDS depending on the nature of the payment. If the payment is in the form of salary, then section 192 will be applicable, and TDS will be deducted as per the income tax slab rates. However, if the payment is in the form of fees or any other compensation for professional services rendered by the director. In that case, section 194J will be applicable, and TDS will be deducted at a flat rate of 10%. This is usually the case for non-executive directors or independent directors who do not have an employer-employee relationship with the company. They earn income from their directorship under the head 'income from business or profession.

One common question in the context of tax deduction at source (TDS) is whether it applies to payments made to the Government or its entities. No tax will be deducted if any sum is payable to the Government, Reserve Bank of India, or a corporation established by or under a central act. This means that any payment made to these government bodies, whether it is interest, commission, rent, royalty, fees, or any other income, is exempt from TDS. This exemption is based on the rationale that the Government is the ultimate recipient of tax revenue, and hence there is no need to deduct tax from payments made to the government.

The Central Board of Direct Taxes (CBDT) clarified this issue in circular no.17 dated 29.9.2020. It has stated that TCS is to be collected on the sales consideration that includes GST as well. This is because TCS is not a tax on income but an interim levy on the possible income earned from the sale of goods. Therefore, it does not affect the valuation of goods or services under GST. This is also in line with the circular issued by the Central Board of Indirect Taxes and Customs (CBIC) in Dec 2018, which clarified that TCS is not a part of the taxable value for GST purposes.

An income tax return (ITR) is a form that taxpayers must file with the Income Tax Department to declare income from all sources. The Income Tax Department then uses this information to calculate tax and define the tax slab into which the taxpayer will fall. Taxpayers can also claim deductions and exemptions on ITR to lower the tax burden. There are seven different ITR forms, each of which is designed for a different type of taxpayer. The most common ITR forms are: · ITR 1: For individuals with a total income of up to ₹5 lakhs · ITR 2: For individuals with a total income of more than ₹5 lakhs · ITR 3: For individuals who are engaged in business or profession · ITR 4: For individuals who are salaried employees · ITR 5: For Hindu Undivided Families (HUFs) · ITR 6: For trusts and charitable organizations · ITR 7: For individuals who have income from overseas sources

According to the Income Tax Act in India, An individual is in obligation to file an income tax return (ITR) if he falls under any of the following categories: · If an individual is less than 60 years of age and his total annual gross income exceeds ₹2.5 lakh. · If a person is a senior citizen (aged 60-79), and his annual gross income surpasses the threshold of ₹3 Lakh. · If a person is a super senior citizen (aged 80 and above) and his annual gross income exceeds the exemption threshold of ₹5 lakh. It is important to note that even if an individual doesn't have a tax liability, it is required to file an (ITR) income tax return in order to avail of tax benefits.

· No More Standing in a Queue: You can e-file your income tax return from the comfort of your home. · Online Status Check: Once you file your ITR electronically, it becomes easy to track the status of your return online. · No More Errors: E-filing software programs can help you avoid errors on your tax forms. This is because the software programs are designed to follow the latest tax laws and regulations. · Faster Refund: E-filed tax returns are processed faster than offline tax returns. I.e., You will get your refund faster. · Auto Saving of Records: Many e-filing software programs can automatically save your tax forms with information from your previous tax returns. This can save you a lot of time and hassle. · Easy Access to Documents: E-filing of your taxes gives you the option to save your documents online. · E-Verification: E-filing allows taxpayers to verify their identity and sign their tax returns electronically

If you have filed an incorrect tax return, you can correct it by filing a revised return as per the current tax laws. The Income Tax Act allows taxpayers to file a revised return under section 139(5). If you come to know something wrong statement in your original return, a revised return can be filed before three months prior to the end of the assessment year or before the end of the assessment, whichever is earlier. Moreover, The assessment year comes immediately after the financial year in which the ITR is filed.

Income Tax returns can be filed an infinite number of times; however, if the original income tax return is filed on paper, then the revised return cannot be filed electronically or online. Moreover, The Income Tax Department do not charge any fees or penalty for the revision of income tax return. If ITR is to be filed online, the taxpayer must fill in the 15-digit acknowledgment number of the primary return. Additionally, it is to be noted that if the revised return is filled too many times, it might attract scrutiny from the Income Tax Department.

If you have paid more tax than your liability, you can claim a refund by filing your income tax return online. There is no separate process for the same. You should electronically verify your return using Aadhaar OTP, EVC (Electronic verification code) generated through the bank or by sending the signed physical ITR-V to CPC (Centralised Processing Centre) within 120 days of filing the return. You should also check your form 26AS to ensure that the excess tax paid by you is stated there. The Income Tax Department will verify the claimed refund, and will be paid only if it is found valid

It is mandatory to have a PAN card for filing Income Tax Return; however, if you have never applied for a PAN card and never allocated a PAN number, you can get an instant e-PAN using your Aadhaar card linked to your phone number. Follow the below steps to generate an e-PAN: Visit the Income tax e-Filing portal homepage, and click Instant e-PAN. On the next page (e-PAN), click on Get a New e-PAN Enter your 12 digits Aadhaar number on Get New e-PAN Select the “I confirm that” checkbox and click Continue. You will be receiving an OTP after OTP validation. After OTP validation, select the “I accept that” checkbox and click continue. You will be showing an acknowledgment number for future reference, And you will receive an e-PAN shortly after the process completion.

Linking Aadhaar with PAN for filing ITR is mandatory unless you fall under one of the exemptions. The deadline to link PAN and Aadhaar is June 30, 2023. If you do not link your PAN and Aadhaar by this date, your PAN will become inoperative. This means that you will not be able to use your PAN for any financial transactions, including filing ITR. There are a few exemptions to the PAN-Aadhaar linking requirement. These exemptions include the following: · Residents of Assam, Jammu, and Kashmir, and Meghalaya · Non-residents as per the Income-tax Act, 1961 · Individuals who are 80 years old or older · Individuals who are not citizens of India

The new ITR forms have incorporated a few changes after the introduction of Section 89A. One of the key changes is the disclosure of income on which Section 89A relief was claimed in the previous year. This change is applicable to ITR 2, 3, and 4. Section 89A was introduced to provide relief to taxpayers who had income from retirement benefits accounts maintained in notified countries. Under this section, the income from such accounts is taxed in India in the year in which it is received rather than the year in which it accrues. This helps taxpayers to avail of the foreign tax credit relevant to tax paid outside India on such income.

If an individual having his a gross income exceeding ₹2.5 lakh, and he does not have any tax liabilities or even have a refund, he still needs to file an income tax return. On the other hand, a person does not need to file an ITR if his income is below the taxable limit of ₹ 2.5 lakh. However, there are exceptions to this law. A person is still required to file an ITR if he has: · Deposited an aggregate amount exceeding ₹1 crore in one or more current bank accounts with any bank. · Incurred expenditure of an aggregate amount exceeding ₹2 lakh for himself or any other person for traveling to a foreign country. · Incurred expenditure of an amount or aggregate of the amounts exceeding ₹1 lakh towards consumption of electricity.

If there are discrepancies between the actual TDS and the TDS credit as per Form 26AS. In such a situation, the employee will have two options as followings: · Pay Tax again: The employee has to claim the TDS credit in the ITR; if not, he will end up paying the Income Tax twice on the same Salary Income. This means that he will suffer a double tax burden, once when the TDS is deducted and again when he files the ITR. · Claim the TDS credit manually: If the discrepancy is not resolved, he can claim the TDS credit manually in his ITR. However, he may need to provide evidence to support his claims, such as salary slips or bank statements.

If the income tax return has been filed in an incorrect manner, or the wrong form has been filed, and any wrong statement has been given, then the ITR will be declared defective by the Income assessing officer of Income Tax. The income tax department will then send you the notice to rectify the mistakes you have made while filing the ITR. And if you don't rectify the mistakes within 15 days of the error being noticed, the ITR will be declared Invalid by the Income Tax Department, which means it will be assumed that the no income tax return was filed in the first place. However, Income Tax Laws allow taxpayers to file a revised income tax return if the wrong ITR has been filed.

An individual requires to file ITR if he has investments in foreign assets. However, he must disclose the details of these assets in Schedule FA of his ITR. This is mandatory for all residents and ordinarily resident Indians who hold any asset located outside India. The following are some of the foreign assets that an individual need to disclose in Schedule FA: · Foreign depository accounts · Foreign equity and debt interest · Foreign cash value insurance contracts · Financial interest in any entity outside India You must disclose the following information about each foreign asset: · The name of the asset · The country in which the asset is located · The value of the asset · The date on which you acquired the asset · The source of the funds used to acquire the asset

· Penalties: The IT Department can impose a penalty of up to Rs. 5,000 for not filing an ITR on time. If you file the ITR after the due date but within a year, the penalty will be Rs. 10,000. · Interest: If you have any tax liability and you do not file an ITR, you will be charged monthly 1% interest per month on the unpaid tax. · Non-Carry Forward of Losses: You will be unable to carry forward any losses from a previous year if you do not file an ITR. · Best judgment assessment: If you do not file an ITR, the assessing officer of the Income tax department will be obligated to make an assessment to the best of his judgment U/S 144 of the Income Tax Act. · Refund of taxes: You will be able to claim a refund only if you have filed ITR.

The holdings of equity shares of a cooperative bank or credit societies, which are unlisted, are required to be reported. This is because the Income Tax Department of India considers these shares to be 'specified investments.' Specified investments are investments that are held by a taxpayer in any entity that is registered under the Companies Act and is not listed on any recognized stock exchange.

The Income Tax Department of India requires residents to report the details of the property and identity of the buyer in Schedule CG if they have sold land and building situated outside India. This is to ensure that all income from capital gains is taxed in India. The information that should be reported in Schedule CG: · Property details: The location of the property, the type of property, the date of purchase, the purchase price, and the current market value of the property. · Buyer details: The name, address, and PAN of the buyer. · Capital gains: The amount of capital gains, the short-term or long-term nature of the gains, and the tax paid.

Details of assets held as stock-in-trade of business are also required to be reported in Schedule AL-1 of ITR-6. This is because stock-in-trade is considered to be an asset of the company. The information that is required to be reported for stock-in-trade: · The cost of the stock-in-trade · The fair market value of the stock-in-trade · The quantity of stock-in-trade · The type of stock-in-trade

Farmer Producer Companies (FPCs) are not required to furnish details of shareholding in the Schedule SH-1 of ITR-6. Since FPCs are not considered to be 'companies' for the purposes of the Income Tax Act of 1961. Instead, FPCs are considered to be 'cooperative societies.'

Here are the steps you must follow to track the status of your ITR - Pre-login ITR Status Step 1. Visit the homepage of the e-filing portal Step 2. Click on 'Income Tax Return Status.' Step 3. On the next page of the ITR status, enter the valid mobile number and your acknowledgment number and click on 'continue.' Step 4. Enter the 6-digit OTP received on your registered mobile number in step 3 and click 'Submit.' Step 5. Once the validation is complete, you can view the ITR status. Post-login ITR Status Step 1. Log in to the e-filing portal or online portal through a valid user Id and password. Step 2. Click on e-file > income-tax returns > view the filed returns. Step 3. The view filed returns shows all the returns you have filed. You can download the ITR-V acknowledgment, intimation order, and the complete ITR form in PDF. Step 4. Click 'View details'

Here are the tax benefits - · The basic exemption limit is 3 lakhs under both regimes · Health insurance premium paid up to Rs.50,000 by a senior citizen is deductible under section 80D. · No tax for senior citizens upto an annual interest of up to Rs.50,000 under section 80TTB. · People above 75 years are exempt from filing ITR if they have income only from a pension and have furnished form 12 BBA to a specific bank. · No need to pay advance tax except in case they have income from business or profession. · Spent up to 1 lakh on any treatment for a specified disease is deductible under section 80 DDB. · Rent on reverse mortgaging their property is exempt from tax. · Standard deduction of Rs.50,000 on pension income and a deduction of Rs.15000 for family pensioners.

Yes. You can get your income tax return e-verified by any representative assessee or authorized signatory on your behalf using any of the following methods - · Aadhaar OTP: An OTP is received on the representative assessee or the authorized signatory's mobile number that is registered with the representative's Aadhaar number. · Net banking: The authorized signatory or the representative assessee will receive an EVC or electronic verification code on his/her mobile number and email Id. · Bank account/ Demat account: Any EVC generated through a pre-validated and EVC-enabled bank account is sent to the email Id or mobile of the authorized signatory or representative assessee.

Once you have filed your ITR, the next step is to e-verify your return online. Just verifying your return is not enough. You also need to check if it has been e-verified. Here's how you can know if your e-verification is complete - If you are e-verifying your return yourself, · A success message is displayed with your Transaction Id. · You will also receive an email on your email Id, registered with the e-filing portal. If you are a representative assessee or an authorized signatory - · A success message is displayed, and your transaction Id is also mentioned. · An email is also sent to the mobile number and the email Id of both the assessee and the authorized signatory.

Section 194P of Budget 2021 to provide relief to senior citizens from the burden of compliance. As per this section, citizens of age 75 years and above are exempt from filing ITR. However, there are a few conditions - · Senior citizens should be aged more than 75 years. · They should be residents in the previous year. · They should have income from pension and interest, and the interest income should be received from the same specified bank where they receive their pension. · The senior citizen is required to submit a declaration to the specified bank. · The bank should be a specified bank notified by the Central Government.

If your self-assessment/ Advance tax does not reflect the amount you deposited in your annual 26AS, you should first identify the possible reasons for this and then ask the deductor to file a revised TDS return. And if there is a mismatch other than the TDS amount, you can - · File a revised return yourself, if you do not receive an intimation · Write correct challan details in ITR · File a rectification request

If your 26AS does not reflect the amount deposited by you, the first thing you need to do is to identify the reason for such a mismatch. After identifying the reason, you must take the following corrective actions - · The mismatch in the information reflected in Form 26AS can be corrected only by the deductor. Therefore, you must approach the deductor and him/her to file a revised TDS return after making the corrections. If there is any mismatch other than the TDS, the following corrective actions can be taken - · If you don't receive an intimation, you can file a revised return. · You can file a request for rectification · Make sure to quote the correct challan details in the ITR. · Claim tax credit only for the amount reflected in Form 26AS.

The residential status of a HUF is as follows - · A HUF will be called a resident in India if its management or control is situated either fully or partially in India. · Here are the conditions where a HUF is treated as resident and ordinarily resident. The Karta must satisfy both the below-mentioned conditions - · He has been resident in India for the previous 2 years out of 10 years in the years immediately preceding the current year. · He must be in India for 730 days or more in the 7 years preceding the current year. If Karta does not satisfy any one of the above conditions, the HUF is treated as a resident but not ordinarily resident. If the HUFs control and management is situated wholly outside India, it is considered to be non-resident.

In India, the Income Tax Law has divided all types of income into 5 different categories - Income from Salary: All income received by an employee from his/her employer is categorized under the head income from salary. Income from House Property: Income earned by letting out a house property on rent is treated as income from house property. Income from Capital Gains: The revenue and income from the sale of assets held by the assessee are known as income from capital gains. It includes stocks, bonds, debentures, etc. Income from Business/Profession: All the income earned from carrying out any business, profession, or freelancing is taxable under this head Income from Other Sources: Income from all the other sources not covered in the above heads are taxed under this category, like lottery winnings, dividends, etc.

If the assessee has not been allocated a Taxpayer Identification (TIN) number in the jurisdiction of residence, the assessee can mention the passport number under the column residential status instead of TIN. The country in which the passport was issued should also be mentioned in the jurisdiction of residence. TIN number, or Taxpayer Identification Number, is an 11-digit number that is assigned to enterprises for tracking their transactions. Any individual who does not satisfy any of the below conditions is considered a non-resident in India - · The individual should spend 182 days or more in a financial year in India. · Should have stayed in India for 60 days or more for 365 days or more in the previous 4 years.

While filing the ITR, you are presented with a drop-down menu where you have to select the type of company you have. In this deep-down, you can simply select a foreign company. As per the Income Tax Law, a foreign company is not required to furnish a PAN number. However, it is necessary to mention the PAN number if the foreign company has been allotted one. Therefore, you can select 'Foreign Company' as the type of company from the drop-down menu.

All the transactions relating to capital gains have to be filed under ITR -2. As per the Indian Income Tax Act, the assessees are required to provide details of the land sold while filing their ITR forms. The details that you need to furnish include 'the date of sale,' 'the date of purchase of the house property, purchase price, sale price, and brokerage. Exemption on capital gains is available under sections 54, 54EC, and 54F.

In case the unlisted equity shares are transferred in the form of a gift, will, merger, demerger, bonus issue, or amalgamation, since the cost of acquisition is zero for the beneficiary, he/she can enter zero in the relevant column against 'cost of acquisition' and 'sale consideration.' Also, the quantitative details are required only for reporting while filing the ITR and not while computing tax liability. Therefore, you can simply enter zero in the ITR against the relevant column and file your ITR.

In case the unlisted equity shares are transferred in the form of a gift, will, merger, demerger, bonus issue, or amalgamation, since the cost of acquisition is zero for the beneficiary, he/she can enter zero in the relevant column against 'cost of acquisition' and 'sale consideration.' Also, the quantitative details are required only for reporting while filing the ITR and not while computing tax liability. Therefore, you can simply enter zero in the ITR against the relevant column and file your ITR.

Yes, if you sell land or a building to a non-resident, it is mandatory to provide the PAN of the buyer in table A1/B1 in schedule CG. However, it is mandatory to furnish PAN of the buyer only if TDS is deducted under section 194IA or it is mentioned in the documents. Under section 194IA, any transferee who has to pay consideration for the transfer of any immovable property has to deduct tax at 1%.

Yes, as per section 12A of the Income Tax Law in India, you have to provide ISIN details and scrip-wise bifurcation and computation of LTCG arising from the sale of mutual funds/shares on which STT has been paid. As per section 12A, long-term capital gains are allowed on the sale of equity mutual funds, listed equity shares. If the capital gains exceed the threshold of Rs.1 lakh, the long-term capital gains are taxable at 10%. It also provides for the mandatory declaration of scrip-wise details on LTCG from the sale of shares on which STT has been paid.

The individuals are required to report the value of assets and liabilities in schedule FA if their total income is more than Rs. 50 lakhs. It is mandatory for resident taxpayers to file schedule FA and not for non-resident taxpayers. While schedule FA requires assessees to report the assets even if they have held them for just one day in the previous year. However, schedule AL requires the assessees to declare their assets held at the end of the previous year.