What are the new tax rules July 2021?
What are the new tax rules July 2021?
Under the new rule, non-filers of income tax returns for two financial years will be subjected to higher TDS or TCS. Here is all you need to know. A new tax rule is coming into effect from July 1, 2021 under which non-filers of income tax for the past two financial years will be subjected to higher taxation.
Is TDS applicable on honorarium fees?
The honorarium is no exception. Thus TDS is to be deducted on honorarium if treated as regular salary (sec 192), as per basic exemption limit stated in the Income Tax Act of relevant Assessment Years. If honorarium treated as consultancy(sec 194J), then deduct TDS at 10%, if basic limit crossed.
What is Section 195 of IT Act?
Section 195 – TDS on Non-Residents. The section 195 of the Income Tax Act, 1961 is all about the Tax Deducted at Source (TDS) for non-resident citizens of India. This section focuses on tax deductions and tax rates that are involved in all business transactions of a non-resident citizen of India on a day-to-day basis.
What is rate in force for Section 195?
What are the rates in force under section 195? The tax has to be deducted as per the rates in force as per chapter XVII B. In a case where the payee does not have a valid PAN, the tax rate will be higher than the rates as mentioned in XVII B or 20%.
What is the TCS limit?
Sellers are covered under Section 206C(1H) of the Income Tax Act, 1961 which points out that if the seller crosses the turnover of more than Rs 10 crores in the previous financial year and exceeds the sale transaction of Rs 50 lakhs during the year, then a TCS rate of 0.1% has to be collected from the buyer on the …
What are the new Income Tax Rules 2021?
New Income Tax Rules which will be effective from 1 April 2021
- Provident Fund (PF) Tax Rules.
- Tax Deducted at Source (TDS)
- Senior Citizens (above the age of 75 years) will not be required to file ITR.
- Pre-filled ITR forms.
- Leave Travel Concession (LTC)
Is an honorarium taxable?
Honorariums are considered taxable income by the IRS.
What is certificate u/s 195 2?
Application by a person for a certificate under section 195(2) and 195(7) of the Income-tax Act, 1961, for determination of appropriate proportion of sum (other than salary) payable to non-resident, chargeable to tax in case of the recipient.
How buyers can deduct TDS u/s 195?
Under Section 195, the TDS can be deposited by the buyer through banks that have been authorised by the Government of India, or the Income Tax Department to collect Direct Taxes. After deposition of the TDS as per Section 195, the buyer has to file TDS return through the electronic medium by submitting Form 27Q.
What is TDs under the new tax regime in India?
Under the new tax regime, no TDS will need to be paid for an annual income of up to Rs.2.5 lakh. In case the annual income is between Rs.2.5 lakh and Rs.5 lakh, the TDS liability is 5%. In case the annual income is between Rs.5 lakh and Rs.7.5 lakh, the TDS liability is 10%.
How much TDS is deducted from your income tax return?
The bank with whom you hold a working account will deduct TDS at 10%. However, if they do not have your PAN details, then TDS at 20% will be deducted. For the majority of payments, TDS rates are set in the Income Tax Act the payer deducts TDS as per the rates applicable.
What are the consequences of non-payment of TDs?
For non-payment of TDS: Under Section 201A of the Income Tax Act, interest will also be levied along with the penalty in case TDS is not paid within the due date.
What are the different types of TDs certificates?
TDS Certificates are of two types: Form 16 and Form 16A. Under Section 203 of the Income Tax Act, 1961, a certificate must be provided to the deductee showing the amount that has been subtracted as tax.
