Taxolawgy
Quick Summary
TDS is Tax Deducted at Source. It is an indirect way for Indias government to raise income tax at source. Union Finance Bill 2020 was presented by Indias Finance Minister Nirmala Sitharaman which introduced various amendments for various income tax and the new tax regime for FY 2020-21. Several a
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FAQ :
TDS stands for Tax Deducted at Source, an indirect method used by the Indian government to collect income tax at the point of payment.
The new tax regime, under Section 115BAC, allows taxpayers to choose between paying taxes under the new scheme or continuing with the current one. However, once the new regime is opted for, it cannot be switched back to the old regime.
For dividends paid by Indian companies to resident shareholders, TDS is now 10% if the dividend amount exceeds ₹5000 during the financial year, making the received dividend taxable in the recipient's hands.
The TDS rate for technical services under Section 194J has been reduced to 2% from the previous 10%. The rate for professional services remains at 10%.
E-commerce operators must deduct 1% TDS on payments made to sellers if the annual payment sum exceeds ₹5 lakh, applicable from the time of payment or delivery.
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