- How is TDS on professional fees calculated?
- Is TDS applicable on professional fees?
- What is the current TDS rate chart?
- How can I save TDS on professional fees?
- What is the limit for TDS deduction?
- Can we deduct TDS at higher rate?
- What is the TDS rate for commission?
- How is TDS calculated?
- What is new TDS rate?
- Can I get TDS refund?
- What is TDS slab for salary?
- What happens if TDS is not deducted?
How is TDS on professional fees calculated?
Rate of deduction of tax Any payment covered under this section shall be subject to TDS at the rate of 10%.
From 1 April 2020, the payment of fees for technical service shall be subject to TDS at the rate of 2%.
In case the payee does not furnish his PAN then the rate of deduction would be 20%..
Is TDS applicable on professional fees?
Everyone except an individual/HUF who is liable to make the following payments to any resident is liable to deduct TDS Under Section 194J: Fees for professional services and for technical services or.
What is the current TDS rate chart?
TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)SectionNature of paymentApplicable from 14/05/2020 to 31/03/2021TDS Rate (%)192SalariesNormal slab rate192APremature withdrawal from EPF10193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year7.549 more rows
How can I save TDS on professional fees?
u have two option , no deduction of tds on professional fee: First- Take a certificate from concerned A.O. for not deduction of TDS or at lower rate of TDS. Second- Invoices should be in different party name ( issuer) and invoice amount should not be more than Rs.
What is the limit for TDS deduction?
Section 192- TDS on Salaries: TDS on salaries is deducted at the rate of the income tax slab for the relevant year. For the assessment year 2020-2021 the exemption limit for an individual is Rs 2,50,000.
Can we deduct TDS at higher rate?
If the recipient makes a declaration without their PAN, then TDS or tax is to be deducted at higher following rates: At the rate specified in the relevant provision of the Act. At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
What is the TDS rate for commission?
TDS Rates Applicable For Salary & Rent as per FY 2018-19CategoryRate of TDSPayments made to contractor/sub-contractors.1% (Hindu Undivided Family/Individuals) 2% (Other Persons)Insurance Commission5%Commission earned on the sale of lottery tickets5%Any commission or brokerage5%9 more rows
How is TDS calculated?
Here’s how an individual can calculate TDS on income: Add basic income, allowances and perquisites to calculate gross monthly income. Compute the available exemptions under Section 10 of the Income Tax Act (ITA) … Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income.
What is new TDS rate?
TDS Rates Applicable for Resident of IndiaTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.20205 (w.e.f 01.06.2016) (10 % from 01.04.2015 to 31.05.2016)5(a) 2 (b) 102 101 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 1010 210 222 more rows•Sep 29, 2020
Can I get TDS refund?
You can claim the credit in respect of taxes deducted at source and claim refund in the return of income. Please ensure that the TDS is reflected in your Form 26AS. Once the return of income is processed, you will be entitled to receive the refund of TDS.
What is TDS slab for salary?
TDS Rate ChartAnnual IncomeTax RatesUp to Rs.2,50,000NilRs.2,50,001-Rs.5,00,0005%Rs.5,00,001-Rs.10,00,000Rs.12,500 + 20% of income above Rs 5 lakhsAbove Rs.10,00,000Rs.1,12,500 + 30% of income above Rs 10 lakhs
What happens if TDS is not deducted?
All companies, irrespective of government or private, must bear a penalty of Rs. 200/day, under section 234E, for the delay in filing TDS or TCS returns after the specified due date. However, such a penalty will not exceed the amount of TDS for which the statement was required to be filed. Also, a penalty from Rs.