In order to discourage cash transactions and move towards less cash economy, Section 194N was inserted vide Finance Act, 2019 (No.2). Following table shows the summarised details of the said section Section</..
Arjun (Fictional Character): Krishna, there has been a change in TDS on cash withdrawal u/s 194N. What are the provisions of section 194N? Krishna(Fictional Character): Arjuna, section 194N for TDS on cash withdrawals exceeding the threshold limit was introduced in Finance Act 2019 to discourage cash transactions and promote digital payments. Upto 30.06.2020, banks (private or public sector), Co-operative banks and post offices are liable to deduct ..
The Income Tax Department has facilitated a new functionality for Banks and Post offices through which they can ascertain the TDS applicability rates on cash withdrawal of above Rs.20 lakh in case of a non-filer of the income-tax return and that of above Rs. 1 Crore in case of a filer of the income-tax return. So far,more than 53,000 verification requests have been executedsuccessfully on this facility. CBDT today said that this functionality available as “Verification of appl..
Section 194K - TDS on Income from Mutual Funds The section 194K of Income-tax Act, 1961 was omitted from the act in the year 2016 to provide advantages to shareholders and increase liquidity. However to maintain the same advantage a new tax regime has been re-introduced in the year 2020. Table of Content: 1 <a hre..
The Govt.of India through Finance Act 2019 had introduced a new section 194N in the Income Tax Act 1961, to provide for levy of Tax Deduction at Source (TDS) @ 2% on Cash payments in excess of One Crore Rupees in aggregate made during the year, by a Banking Company or cooperative Bank or post office, to any person from one or more accounts maintained with it by the recipient. This came into effect from 1st September 2019. There were certain changes made from t..
Section 194N of Income Tax Act TDS on payment of certain amounts in cash Deductor: Bank, Co-operative bank or a post office Threshold limit: If aggregate payment in cash from one or more accounts during a previous year to an account holder exceeds the threshold limit given below: ..
BOOK IDENTIFICATION NUMBER As part of the TDS process, deductors are required to fill Form 24G on a monthly basis. The same is then submitted to the Drawing & Disbursement Officer (DDO) for processing. Once this form is filled, a unique identification number called the Book Identification Number (BIN) is issued to the deductor on the NSDL Tax information Network. The BIN quoting has been termed mandatory for government deductors, who are reporting TDS without payment through b..
Tax deduction at source or Tax collected at source are the most convenient mode of tax collection by the government thus it is a tool to collect tax to minimize the tax evasion by taxing the income at the time when income generated and instead of taxing on a later date. A large number of changes/amendments through Finance Act 2020, have been brought in relating to the TDS/TCS under various provisions under section 194, 194A, 194C,194J, 194K,194N, 194O etc. A new section 19..
The present article briefly covers the important provisions and recent changes relating to "TDS on Payment to Contractors", which is covered u/s 194C of the Income Tax Act 1961. Section 194C - Payments to contractors. Any person responsible for paying any sum to any resident contractor for carrying out any "work" in pursuance of a contract between the "contractor" and a "specified person" shall, at the time of credit of..
TDS is Tax Deducted at Source. It is an indirect way for India's government to raise income tax at source. Union Finance Bill 2020 was presented by India’s Finance Minister Nirmala Sitharaman which introduced various amendments for various income tax and the new tax regime for FY 2020-21...