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Tax deduction at source means
« on: June 25, 2012, 04:39:36 PM »
Tax deduction at source means the tax required to be paid by the assesses, is deducted by the person paying the income to him. Thus, the tax is deducted at the source of income itself. The income tax act enjoins on the payer of such income to deduct the given percentage of income as income tax and pay the balance amount to the recipient of such income. The tax so deducted at source by the payer is to be deposited in the income tax department account. The tax so deducted from the income of the recipient is deemed to be payment of income tax by the recipient at the time of his assessment.

For example, person responsible for paying any income which is chargeable to tax under the head 'Salaries' is required to compute the tax liability in respect of such income and deduct tax at source at the time of payment.If the employee has any other income,he needs to inform the employer so that employer can take that income into consideration while computing his tax liability but he will not take into account losses except loss from house property.

Similarly, person responsible for paying any income by way of 'interest on securities' or any other interests are required to deduct tax at source at the prescribed rates at the time of credit of such income to the account of the payee or at the time of payment,whichever is earlier.

The income from the following sources is subjected to tax deduction at source

    Salary and all other positive incomes under any head on income( Section 192 )
    Interest on securities ( Section 193 )
    Interest other than interest on securities( Section 194A )
    Payments to contractors and sub-contractors( Section 194C )
    Winnings from Lottery or crossword puzzles( Section 194B )
    Winnings from horse races( Section 194BB )
    Insurance Commission covering all payments for procuring Insurance business( Section 194D )
    Any interest other than interest on securities payable to non-residents not being a company or to a foreign company( Section 195 )
    Payment to non-resident sportsman including athlete or sports association/institution.In case of non-resident sportsman,payments in respect of advertisements as well as articles on any game/sports in India in newspapers,magazines,etc. is included( Section 194E )
    Payment in respect of deposits under NSS[National Savings Scheme]( Section 194EE )
    Payment on account of repurchase of Units by Mutual Fund or UTI( Section 194F )
    Payment for Commission or brokerage( Section 194H )
    Payment of rent( Section 194I )
    Payment of fees for professional or technical services( Section 194J )
    Commission to Stockist,distributors,buyers and sellers of Lottery tickets including remuneration or prize on such tickets( Section 194G )
    Income from Units purchased in foreign currency or long-term capital gain arising from the transfer of such Units purchased in foreign currency ( Section196B )
    Payment of any income to non-residents in respect of interest or dividend on bonds and shares( Section 196C )etc.

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Tax deduction at source means
« on: June 25, 2012, 04:39:36 PM »

Offline TechShristi

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Tax deduction at source means
« Reply #1 on: June 25, 2012, 04:39:36 PM »
Hello admin123,  June 25, 2012, 4:39 pm

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Tax deduction at source means
« Reply #1 on: June 25, 2012, 04:39:36 PM »

 
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