Tax on nre amount
This query is : Resolved
20 June 2015
Dear Sir
one person who deposit in his brothers saving account from saudi arab
i want toknow how much tax will be applicable
pls reply
one person who deposit in his brothers saving account from saudi arab
i want toknow how much tax will be applicable
pls reply
20 June 2015
no tax. its a remittance.....
21 June 2015
but sir he recvd a notice from ITO for persent details fo tanction and which amount are witdrwal from bank
21 June 2015
just because the AO has asked for information that doesnt mean the said transaction is taxable!!
26 June 2015
Sir i gave a interview than one manager asked to me what do you know about TDS,,
sir requesting you explain in details
pls
sir requesting you explain in details
pls
26 July 2025
Sure! Here’s a clear explanation of **TDS (Tax Deducted at Source)**:
---
### What is TDS?
**TDS (Tax Deducted at Source)** is a system introduced by the Income Tax Department to collect tax at the source of income itself. Instead of paying the entire tax at the end of the year, a certain percentage is deducted when the income is generated or payment is made.
---
### How does TDS work?
* When a person or company (called the **payer**) pays certain types of income (like salary, interest, rent, professional fees) to another person (called the **payee**), the payer deducts tax before making the payment.
* This deducted tax is then deposited with the government on behalf of the payee.
* The payee can claim credit for this tax when filing their income tax return.
---
### Why is TDS important?
* It helps the government collect tax regularly and prevent tax evasion.
* Ensures taxpayers pay their due taxes in a timely manner.
* Payees get a credit for tax already paid when they file their return.
---
### Common TDS rates (examples):
| Nature of Payment | TDS Rate (approximate) |
| ------------------------ | -------------------------------------------------------- |
| Salary | As per income tax slab (via employer) |
| Interest on securities | 10% |
| Rent | 10% or 2% depending on type |
| Professional fees | 10% |
| Contract payments | 1% to 2% |
| Payment to non-residents | 30% or as per DTAA (Double Taxation Avoidance Agreement) |
---
### Important points:
* If the payee’s total income is below the taxable limit, they can submit a **Form 15G/15H** to avoid TDS.
* If TDS is deducted but the actual tax liability is less, the payee can claim a refund by filing an income tax return.
* TDS deducted is reflected in Form 26AS (tax credit statement).
---
If you want, I can explain specific TDS provisions related to your job or any other payment! Would you like that?
---
### What is TDS?
**TDS (Tax Deducted at Source)** is a system introduced by the Income Tax Department to collect tax at the source of income itself. Instead of paying the entire tax at the end of the year, a certain percentage is deducted when the income is generated or payment is made.
---
### How does TDS work?
* When a person or company (called the **payer**) pays certain types of income (like salary, interest, rent, professional fees) to another person (called the **payee**), the payer deducts tax before making the payment.
* This deducted tax is then deposited with the government on behalf of the payee.
* The payee can claim credit for this tax when filing their income tax return.
---
### Why is TDS important?
* It helps the government collect tax regularly and prevent tax evasion.
* Ensures taxpayers pay their due taxes in a timely manner.
* Payees get a credit for tax already paid when they file their return.
---
### Common TDS rates (examples):
| Nature of Payment | TDS Rate (approximate) |
| ------------------------ | -------------------------------------------------------- |
| Salary | As per income tax slab (via employer) |
| Interest on securities | 10% |
| Rent | 10% or 2% depending on type |
| Professional fees | 10% |
| Contract payments | 1% to 2% |
| Payment to non-residents | 30% or as per DTAA (Double Taxation Avoidance Agreement) |
---
### Important points:
* If the payee’s total income is below the taxable limit, they can submit a **Form 15G/15H** to avoid TDS.
* If TDS is deducted but the actual tax liability is less, the payee can claim a refund by filing an income tax return.
* TDS deducted is reflected in Form 26AS (tax credit statement).
---
If you want, I can explain specific TDS provisions related to your job or any other payment! Would you like that?
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