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Finance Minister Nirmala Sitharaman included Section 194S in Budget 2022 to apply TDS on the transfer of cryptocurrencies and other VDAs (Virtual Digital Assets). Section 194S takes effect on July 1, 2022, rather than April 1, 2022. To track the transactions of VDAs and cryptocurrency, the government imposed a 1% TDS deduction on VDA transfers if the aggregate value reaches INR 10,000 during the financial year in question. Particulars Section 194S TDS Rate 1% Threshold Limit No tax is deducted if the consideration is payable by anyone other than a specified person to a resident and the value or aggregate value of such consideration does not exceed Rs 10,000/- during the fiscal year. Non Applicability If the consideration is payable by a specified person to a resident and the value or aggregate value of such consideration does not exceed Rs 50,000/- during the fiscal year, no tax i...

SECTION 194R - DEDUCTION OF TAX ON BENEFIT OR PERQUISITE IN RESPECT OF BUSINESS OR PROFESSION   In the Finance Act 2022, a new TDS section 194R, has been inserted in the Income Tax Act, and which has been made applicable w.e.f. 1.7.2022. TDS @ 10% of the value of- Benefit or perquisites, whether given in Cash or Kind, to a Resident from Resident Provided that a resident individual who is given such benefits or perquisites which are wholly in kind or partly in kind, is responsible to pay TDS on value of such benefits before releasing it. Not required to deduct TDS if value of benefit or perquisite in a financial year does not exceed 20,000 rupees . Person not required to deduct TDS under this section- Individual or HUF, whose total sales, gross receipts or turnover does not exceed 1 Cr rupees in case of business or 50 Lakhs rupees in case of profession, during the financial year immediately preceding the financial year. Clarificatory Circular by CBDT The Apex body ...

The Finance Act, 2021, has introduced many new provisions regarding deduction or collection of tax at source. One of them is: Section 194Q - TDS on purchase of goods Applicable from 01.07.2021 As per section 194Q(1), any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year , shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1% of such sum exceeding fifty lakh rupees as income-tax . **Rate increases to 5% in case of seller not having PAN, as per section 206AA of the Income Tax Act, 1961. Explanation – For the purposes of this sub-section, “buyer” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during...

  Source:Google DUE DATE FOR QUARTERLY TDS STATEMENT Types of Quarterly TDS statements- 1)    Form 24Q – Statement of deduction of tax from salary under section 192. 2)    Form 26Q – Statement of deduction of tax under Section 193 to 196D in any other case. 3)    Form 27Q – Statement of deduction of tax under section 193 to 196D in respect of the deductee who is a non-resident (not being a company) or a foreign company or resident but not ordinarily resident. However, in case tax is deducted under section 194-IA and 194-IB, the deductor shall furnish a challan-cum-statement in Form 26QB and Form 26QC respectively  within a period of 30 days from the end of the month  in which the deduction is made. In this case, no statement shall be filed separately. DUE DATE FOR QUARTERLY TDS STATEMENT   (FOR FY 2020-21)        As Per Notification No.35 /2020/ F. No. 370142/23/2020 – TPL dated ...

As per Section 203A of the Income Tax Act 1961, it is mandatory for all asseesee’s liable to deduct TDS to quote this TAN Number in all communications regarding TDS with the Income Tax Department Failure to do so attracts a penalty of Rs. 10,000 . TDS Returns and Payments would not be received by the Banks if TAN No. is not quoted. What Is TAN? TAN Number is a 10 Digit Alphanumeric Number and is used as an abbreviation for Tax Deduction and Collection Account Number .       ü   Difference between TDS and TCS? Every Assessee who is liable to deduct TDS required to apply for a TAN No first and shall quote this number in all TDS Returns, TDS Payments and any other communication regarding TDS with the Income Tax Department.     ü   An assessee is any individual who is liable to pay taxes to the government against any kind of income earned or any losses incurred by him for a particular assessment year. How to apply for TAN Number? TAN Numb...

TDS Key Definitions:- 1.       The company or person that makes the payment after deducting TDS is called a deductor . 2.       The company or person receiving the payment is called the deductee. The concept of Tax Deducted at Source (TDS) was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment –cash, cheque or credit–and is linked t...