Department is required to give credit for TDS once valid TDS certificate had been produced or even where deductor has not issued TDS certificates, on the basis of evidence produced by the assessee regarding deduction of tax at source and on the basis of indemnity bond.
The CBDT has issued Instruction No. 02/2014 dated 26.02.2014 in which it has referred to the judgements of the Supreme Court in Transmission Corp of A. P. 299 ITR 587 and GE India Technology Pvt. Ltd 327 ITR 456 on the issue of deduction of tax at source u/s 195 while making payments to non-residents.
The CBDT has issued Circular No. 6 of 2014 dated 11.02.2014 in which the issue as to whether mutual funds/specified companies are required to pay additional income-tax under sub-section(2) to section 115R of the Act not only on income distributed by way of dividend but also on payments made at the time of redemption/repurchase of units as well as at the time of allotment of bonus units to existing investors has been considered in great detail
The CBDT has issued Circuar 04/2014 dated 10.02.2014 pointing out that a large number of returns have become non-est as ITR-V was not furnished within the due date. As a result the refund claims have not been processed.
This communication by TDS-CPC team seeks to provide important information related to a Certificate issued for Deduction of Tax at Lower/ NIL Rates under section 197/197A of the Income Tax Act, 1961.
This section is applicable from 1st June 2013 for the property transactions above RS 50 lakh.
Section 194IA reads as under,
1. “Any persons, being a transferee responsible for paying (other than the person referred to in sec 194-LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or any other mode, which ever is earlier, deduct an amount equal to one per cent of such sum as income tax thereon ”
TDS not to be Deducted on Service Tax Component shown Separately
Whether to deduct TDS on Service Tax Amount? This question had always put deductor in difficulty. The question always comes that whether TDS is to be deducted on the entire amount of the invoice i.e. including service tax or only on the payment made towards services i.e. excluding service tax.
On 29/06/2013, the Income Tax Department has released the following File Validation Utilities for the purpose of TDS Returns which would become applicable from 1st July 2013:
FVU Ver. 3.8 – Applicable from FY: 2010-11 onwards
FVU Ver 2.134 – Applicable from FY: 2007-08 till FY: 2009-10
For Fy 2006-07 or earlier financial years, eTDS returns (both regular and correction) will not be validated/filed any further. Major structural changes have announced in FVU Ver. 3.8 that would be applicable for financial year 2013-14.
Income Tax Department vide notification no 39/2013 dated 31st May 2013 has released the provisions and rules related to section 194-IA i.e. TDS on transfer of certain immovable properties other than agriculture land whose value or consideration exceeds Rs. 50 lacs, regarding mode of deduction, time of deposition and issuance of TDS certificates.
Currently, sale in cash of bullion (excluding coin or any other article weighing 10 grams or less) in excess of Rs 2 lakh or jewellery in excess of Rs.5 lakh is subject to Tax Collection at Source (TCS) @ 1%.
TDS has become most important topic today, as a minor mistake on the part of the assessee in deducting TDS leads to notices from the department. So firstly the correct Rate of TDS is to be known. Below is the TDS rate chart applicable to Financial Year 2013-14
tax 'N' accounts people
Tarun Kumar Gupta
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