TDS charges for FY 2024-25: Tax Deducted at Supply (TDS) is a mechanism by which the federal government collects tax straight from the supply of revenue. It applies to quite a lot of incomes akin to wage, curiosity on financial institution deposits, fee, home hire, and dividends, amongst others. Nonetheless, the speed of TDS deduction varies primarily based on particular guidelines.
For example, if a person pays home hire of Rs 50,000 or extra, they’re required to deduct TDS at a charge of 5% earlier than making the cost to the owner.
It’s vital to stick to the prescribed guidelines relating to TDS deduction and submitting TDS returns. Failure to conform can result in penalties, and in extreme circumstances, imprisonment is feasible, states an ET report.
Abhishek Soni, co-founder of Tax2Win, was quoted as saying, “TDS charges differ relying on the character and quantity of revenue, in addition to the standing of the recipient (whether or not they’re a resident, a non-resident, and so forth.). In some extreme circumstances, the deductor might face prosecution and imprisonment for as much as seven years in the event that they wilfully fail to deduct or deposit the TDS, as stipulated below part 276B of the Revenue-tax Act 1961. This authorized motion has severe penalties and will have long-lasting implications for the deductor.”
Understanding how TDS works and understanding TDS charges
When making a cost topic to TDS, the payer should deduct a specified proportion of the quantity paid. The recipient then receives a TDS certificates from the deductor, indicating the quantity deducted.
For example, in circumstances the place month-to-month home hire exceeds Rs 50,000, the tenant should present the owner with Kind 16C (TDS certificates) inside 15 days from the due date of submitting TDS return. Upon receiving the certificates, the deductee can declare the TDS quantity as tax paid for the respective monetary yr. The TDS deposit displays within the deductee’s Kind 26AS and Annual Data Assertion (AIS).
For example, if a person pays home hire of Rs 50,000 or extra, they’re required to deduct TDS at a charge of 5% earlier than making the cost to the owner.
It’s vital to stick to the prescribed guidelines relating to TDS deduction and submitting TDS returns. Failure to conform can result in penalties, and in extreme circumstances, imprisonment is feasible, states an ET report.
Abhishek Soni, co-founder of Tax2Win, was quoted as saying, “TDS charges differ relying on the character and quantity of revenue, in addition to the standing of the recipient (whether or not they’re a resident, a non-resident, and so forth.). In some extreme circumstances, the deductor might face prosecution and imprisonment for as much as seven years in the event that they wilfully fail to deduct or deposit the TDS, as stipulated below part 276B of the Revenue-tax Act 1961. This authorized motion has severe penalties and will have long-lasting implications for the deductor.”
Understanding how TDS works and understanding TDS charges
When making a cost topic to TDS, the payer should deduct a specified proportion of the quantity paid. The recipient then receives a TDS certificates from the deductor, indicating the quantity deducted.
For example, in circumstances the place month-to-month home hire exceeds Rs 50,000, the tenant should present the owner with Kind 16C (TDS certificates) inside 15 days from the due date of submitting TDS return. Upon receiving the certificates, the deductee can declare the TDS quantity as tax paid for the respective monetary yr. The TDS deposit displays within the deductee’s Kind 26AS and Annual Data Assertion (AIS).
TDS charges for FY 2024-25
Under is a desk illustrating the TDS charges relevant for wage, home hire, shares, and different prescribed transactions within the monetary yr 2024-25:
Supply: Abhishek Soni, co-founder, Tax2Win (a tax submitting help firm) as quoted by ET
