Who is liable to deduct tax at source

Tax Exemption Limit. Income Tax Slabs. Insure Life Insurance. Health Insurance. Motor Insurance. Other Risk Covers. Personal Finance News. Mutual Funds. From Sept 1, individuals must deduct TDS on payments to contractors, professionals: Know all about it. Rate Story.

Font Size Abc Small. Abc Medium. Abc Large. Getty Images The requirement to deduct tax would arise only when the payment exceeds Rs 50 lakh in a financial year.

By Sachin Vasudeva From September 1, , an individual or HUF paying any sum to a contractor or a professional or commission or brokerage more than Rs 50 lakh in a financial year would be required to deduct tax at source TDS at the time of credit of such sum or at the time of payment of such sum; whichever is earlier.

Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered.

In such case, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall submit a statement in Form No. The payment falls under the specified categories defined under sections to of the Income Tax Act.

The amount exceeds the limits specified for such payments as per the CBDT circular for the assessment year. Payment of Salary 2.

Interest payment on debentures and other securities 3. Dividend payments 4. Lottery winnings, prize money, etc. Commission income 6. Rent on building only when exceeding Rs 50, p. Payment to NRI on any investments 9. The following types of payments will not attract TDS if they do not exceed the specified limit for A. You will need to use the appropriate form based on the type of payment on which TDS has been deducted. Otherwise, the normal TDS rates on the following payments have been:. Follow the process below to file your TDS return online:.

Register your TAN number for e-filing 2. Author Bio. Leave a Reply Cancel reply Your email address will not be published. Studycafe Articles Submit your Articles with us by Clicking Submit Article Button Submit Article you can also submit your articles by sending mail at [email protected]. SBI launches video life certificate facility for pensioners. Important links Shop Courses Downloads Advertise.