House Rent Allowance


Introduction: The Term HRA stands for House Rent Allowance. HRA is given by the employer to the employee to meet the expenses in connection with rent of the accommodation which the employee might have to take. Generally every employee receives a HRA from their employers as part of his salary package, in accordance with terms and … Continue reading House Rent Allowance

Impacts due to amendment in the provision of Deduction of Tax at Source in case of Transporters


This proposed amendment will have impact on both the parties i.e. payer and payee. In case of Payees, the inflow of cash will be less as compared to earlier as there going to be a deduction of 1% / 2% from the revenues. Further, it may also bring the larger amount of revenue under the … Continue reading Impacts due to amendment in the provision of Deduction of Tax at Source in case of Transporters

TDS On Payment To Transporters


Under the existing provisions of section 194C of The Income Tax Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 75,000.

Prior to 1.10.2009, Section 194C of the Act provided for exemption from TDS to an Individual transporter who did not own more than two goods carriage at any time during the previous year.

Subsequently, Finance (No.2) Act, 2009 substituted section 194C of the Act with effect from 1.10.2009, which inter alia provided for non – deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer. Continue reading “TDS On Payment To Transporters”

TDS on Recurring Deposits


The Finance Bill, 2015, received consent from the President on 14 May 2015. The changes proposed in the bill have been accepted and some of these are effective from 1st June, 2015. Tax Deducted at Source (TDS) on Recurring Deposits Interest is one of these. Let us see the effect of these changes:

To control the evasion of Income tax, it was proposed to apply TDS on various investment avenues, and for the purpose, an amendment was proposed in the section 194A of the Income ­tax Act, 1961. Till now, Recurring Deposit (RD) were not the part of “time deposits” as defined in section 194A of Income Tax Act, 1961; So, no Tax was deducted on the payment of interest on RDs. However, as per the new amendment, RDs are also considered as “time deposits” as defined in the section, and interest earned on RDs will attract TDS. Continue reading “TDS on Recurring Deposits”

SECTION 234A – INTEREST FOR DEFAULT IN FURNISHING RETURN OF INCOME


(A)  Where the return of income for any Assessment year is furnished after the due date specified in section 139(1) or is not furnished the assessee shall be liable to pay simple Interest @ 1% for every month or part of a month. Section 139(1) specifies due dates for filing voluntary returns of a company, … Continue reading SECTION 234A – INTEREST FOR DEFAULT IN FURNISHING RETURN OF INCOME

New List for Date Of Birth documents accepted by CBDT for PAN Application


It is hereby informed that Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance vide its notification no. 995 (E) dated April 10, 2015, has amended the Rule 114(4) of Income ­tax Rules, 1962 where by certain additional documents have been prescribed as proof of Date of Birth. The following documents are … Continue reading New List for Date Of Birth documents accepted by CBDT for PAN Application