TDS(provision and computation details)
This query is : Resolved
02 January 2009
please,anyone send me the details regarding detailed information of TDS provisions and computation?
02 January 2009
1.What is Tax Deduction at source?
Under the system of Tax Deduction at source (TDS), the payer is required to deduct
tax at the time the payment is received by or credited to the account of the payee. This
is similar to the PAYE system whereby tax is deducted by employer at the time
emoluments are made available to the employee.
2. Which types of payments would be subject to tax deduction at source?
Following types of payments would be subject to tax deduction at source:
(a)Interest;
(b)Royalties;
(c) Rent;
(d)Any sum paid to architects, engineers, land surveyors, project managers in
construction industry, property valuers and quantity surveyors as
consideration for services rendered by them;
(e)Payments to contractors and sub-contractors.
3. What is the rate of tax deduction at source?
The rate of tax deduction at source for different types of payments is:
Interest 15%
Royalties 10%
Rent 5%
Payments to providers of services 3%
Payments to contractors and sub-contractors 0.75%
4.Deduction of tax at source is an advance payment of taxes and would thus be
offset against the income tax liability of the payee.
Thanks.
Under the system of Tax Deduction at source (TDS), the payer is required to deduct
tax at the time the payment is received by or credited to the account of the payee. This
is similar to the PAYE system whereby tax is deducted by employer at the time
emoluments are made available to the employee.
2. Which types of payments would be subject to tax deduction at source?
Following types of payments would be subject to tax deduction at source:
(a)Interest;
(b)Royalties;
(c) Rent;
(d)Any sum paid to architects, engineers, land surveyors, project managers in
construction industry, property valuers and quantity surveyors as
consideration for services rendered by them;
(e)Payments to contractors and sub-contractors.
3. What is the rate of tax deduction at source?
The rate of tax deduction at source for different types of payments is:
Interest 15%
Royalties 10%
Rent 5%
Payments to providers of services 3%
Payments to contractors and sub-contractors 0.75%
4.Deduction of tax at source is an advance payment of taxes and would thus be
offset against the income tax liability of the payee.
Thanks.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Bank Accounts in Balance Sheet for ITR 3
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Form 10BD Filling
- Pan Card apply for Self help group
- Reporting of STCG on Property in ITR
- Error while filling exam form November 2026
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
