TRAPS OF TDS
This query is : Resolved
22 July 2010
Q1.WHAT IS THE RATE OF TDS FOR SALARY U/S 192 AND INTEREST ON SECURITIES U/S 193 FOR THE AY 2010-11 ?
Q2. WHICH ARE THE SECURITIES WHICH IS NOT SUBJECT TO TDS U/S 193 ? PLEASE EXPLAIN IN DETAIL
Q3. FORM 13 IN TDS WHAT IS IT ? IS THAT BENEFICAL IN ANY CASE ?
Q4.WHAT DECLARATION DOES FORM 15G GIVE?
WHO CAN FILL 15G ?
PLEASE ANSWER POINT WISEM THANKS
Q1.WHAT IS THE RATE OF TDS FOR SALARY U/S 192 AND INTEREST ON SECURITIES U/S 193 FOR THE AY 2010-11 ?
Q2. WHICH ARE THE SECURITIES WHICH IS NOT SUBJECT TO TDS U/S 193 ? PLEASE EXPLAIN IN DETAIL
Q3. FORM 13 IN TDS WHAT IS IT ? IS THAT BENEFICAL IN ANY CASE ?
Q4.WHAT DECLARATION DOES FORM 15G GIVE?
WHO CAN FILL 15G ?
PLEASE ANSWER POINT WISEM THANKS
22 July 2010
For rates of TDS on Salary and Interest on securities---
Visit Following Link---
http://multiutils.com/itax/tds0910.htm#a2
Visit Following Link---
http://multiutils.com/itax/tds0910.htm#a2
22 July 2010
Tax is not deductible in respect of interest payable on the following securities:
1. Interest payable on any security of the Central/State Government. But, interest exceeding Rs.10,000/- during a financial year payable on 8% Savings (Taxable) bonds, 2003 is subject to deduction of tax at source.
2. Interest payable on debentures issued by any institution or authority or any public sector company or co-operative society notified by the Central Government.
3. Interest payable on any security owned by the Life Insurance Corporation of India.
4. Interest payable to an individual on debentures which are issued by a company in which public are substantially interested provided that the debentures are listed on a recognised stock exchange in India and the payment is made by an account payee cheque and the aggregate amount of payments to the individual during the financial year does not exceed Rs.2,500.
5. Interest payable to General Insurance Corporation of India or to any of the four companies formed by virtue of schemes framed under section 16(1) of the General Insurance Business (Nationalisation) Act.
6. Interest payable to any other insurer.
1. Interest payable on any security of the Central/State Government. But, interest exceeding Rs.10,000/- during a financial year payable on 8% Savings (Taxable) bonds, 2003 is subject to deduction of tax at source.
2. Interest payable on debentures issued by any institution or authority or any public sector company or co-operative society notified by the Central Government.
3. Interest payable on any security owned by the Life Insurance Corporation of India.
4. Interest payable to an individual on debentures which are issued by a company in which public are substantially interested provided that the debentures are listed on a recognised stock exchange in India and the payment is made by an account payee cheque and the aggregate amount of payments to the individual during the financial year does not exceed Rs.2,500.
5. Interest payable to General Insurance Corporation of India or to any of the four companies formed by virtue of schemes framed under section 16(1) of the General Insurance Business (Nationalisation) Act.
6. Interest payable to any other insurer.
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22 July 2010
Form 13 is for Application by a person for a certificate under section 197 of the Income-tax Act, 1961, for no deduction of tax or deduction of tax at a lower rate.
Form 15H
In routine process Bank will deduct tax at source on fixed deposit interest, if it is above Rs. 10000. The TDS is deducted at the rate of 10% (w.e.f.1-4-2010 If PAN will not be furnished then TDS will be deducted @ 20%). So to get the income tax refund, you have to file the income tax return. To avoid this process, you have to declare that you have not any taxable income. The main and only purpose of these forms, is to submit declaration in writing in duplicate that there is not tax payable on his total income. In this case the payer shall not deduct any tax at source.
• Form 15H must be used above 65 years old individual.
• Previous year income should not be taxable.
• Form 15H should be submitted before the first payment of interest on fixed deposit.
Form 15G
• Form 15G is same like Form 15H difference is only that form 15G is for every individual below then 65 years.
The duty of submit these forms with assessee before end of the financial year or first payment of interest whichever is earlier.
The payer is under an obligation to deduct tax until the declaration in Form No. 15 G/15H is received and in the event that such form is not received till the end of the financial year, the failure to deduct tax amounts to violation of this section.
Form 15H
In routine process Bank will deduct tax at source on fixed deposit interest, if it is above Rs. 10000. The TDS is deducted at the rate of 10% (w.e.f.1-4-2010 If PAN will not be furnished then TDS will be deducted @ 20%). So to get the income tax refund, you have to file the income tax return. To avoid this process, you have to declare that you have not any taxable income. The main and only purpose of these forms, is to submit declaration in writing in duplicate that there is not tax payable on his total income. In this case the payer shall not deduct any tax at source.
• Form 15H must be used above 65 years old individual.
• Previous year income should not be taxable.
• Form 15H should be submitted before the first payment of interest on fixed deposit.
Form 15G
• Form 15G is same like Form 15H difference is only that form 15G is for every individual below then 65 years.
The duty of submit these forms with assessee before end of the financial year or first payment of interest whichever is earlier.
The payer is under an obligation to deduct tax until the declaration in Form No. 15 G/15H is received and in the event that such form is not received till the end of the financial year, the failure to deduct tax amounts to violation of this section.
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22 July 2010
EXCELLENT SIR,
THANKS FOR SUCH POINT AND DETAILED ANSWER,
SIR PLEASE CLEAR ME ABT THIS POINT
"THE MAIN AND ONLY PURPOSE OF THIS 15G/15H FORMS IS THAT NO TAX PAYABLE ON HIS TOTAL INCOME "
DOES IT MEANS THAT
AFTER INCLUDING INTEREST INCOME ALSO, HIS INCOME IS BELOW THE SPECEFIED LIMIT , SO NO TAX SHOULD BE DEDUCITBLE AT SOURCE ?
IF NOT THIS, JUST CLEAR ABT THIS,
THANKS A LOT SIR AS
THANKS FOR SUCH POINT AND DETAILED ANSWER,
SIR PLEASE CLEAR ME ABT THIS POINT
"THE MAIN AND ONLY PURPOSE OF THIS 15G/15H FORMS IS THAT NO TAX PAYABLE ON HIS TOTAL INCOME "
DOES IT MEANS THAT
AFTER INCLUDING INTEREST INCOME ALSO, HIS INCOME IS BELOW THE SPECEFIED LIMIT , SO NO TAX SHOULD BE DEDUCITBLE AT SOURCE ?
IF NOT THIS, JUST CLEAR ABT THIS,
THANKS A LOT SIR AS
22 July 2010
Amit you are correct. It means what you wrote above.
22 July 2010
thanks sir,
but i know my income exceeds the limit
even though i declare in 15 g that it does.nt, what will happen ?
Can i save tax ?
but i know my income exceeds the limit
even though i declare in 15 g that it does.nt, what will happen ?
Can i save tax ?
22 July 2010
thanks sir,
but i know my income exceeds the limit
even though i declare in 15 g that it does.nt, what will happen ?
Can i save tax ?
but i know my income exceeds the limit
even though i declare in 15 g that it does.nt, what will happen ?
Can i save tax ?
22 July 2010
If no tax payable after deduction no problem otherwise you will have to pay tax. You cant save tax.
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