{"id":3380,"date":"2020-01-14T17:39:59","date_gmt":"2020-01-14T12:09:59","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=3380"},"modified":"2020-01-14T17:44:24","modified_gmt":"2020-01-14T12:14:24","slug":"tds-rates-for-ay-2020-21","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/tds-rates-for-ay-2020-21\/","title":{"rendered":"Latest Changes And TDS Rates For AY 2020-21"},"content":{"rendered":"

As per Income-tax Act, 1961, an assessee can receive the income from 5 heads which are income from salary, house property, business or profession, capital gain or any other source. For each head, there is separate taxability is being defined under the act. Generally, the income earned by an assessee in the previous year is taxable in the assessment year however, there are some kinds of income in which the government received the tax from the payer by TDS. It\u2019s another mode of recovery of Tax.\u00a0<\/span><\/p>\n

\"TDS<\/a><\/p>\n

We receive income from different ways like Salary, Dividend income from mutual funds<\/a> or stocks, commission, interest on your Bank Fixed Deposits \/ Securities rent, etc.,<\/span><\/p>\n

The payer of these incomes<\/span> (like your company\/bank)<\/span> may deduct a certain percentage of income (As defined under Income tax act) as <\/span>TDS (<\/span><\/i>Tax Deducted at source<\/span>)<\/span><\/i> based on certain threshold limits.<\/span><\/p>\n

For Example,<\/strong> Mr. A is taking professional Service from Mr. B of Rs.3,00,000. In this case, Mr. A will be required to deduct the TDS @ 10% under section 194J and paid the net amount to Mr. B. Although, Mr. B will be eligible to take the credit of such TDS from his total tax liability<\/a>.<\/span><\/p>\n

Well as per the legal language, TDS or tax deducted at source is the process of collecting Income Tax by the government in the previous year in which the income has been earned by the assessee. It\u2019s an indirect method of collecting the TDS which combines the concepts of \u201cpay as you earn\u201d and \u201ccollect as it is being earned.\u201d<\/span><\/p>\n

TDS is deducted at a specified rate, defined under income tax law, and different rates have been specified for different kinds of income<\/span><\/p>\n

Now, let\u2019s take one more example of TDS for more clarification;<\/strong><\/p>\n

Mr. A has made a Fixed Deposit in a PNB for Rs 10 Lakh for 1 year @ 9% pa interest rate. He will earn an interest income of Rs 90,000 after one year. The Bank may deduct TDS at the rate of 10% i.e., Rs 9,000 <\/span>(10% of Rs 90,000)<\/span><\/i> and deposits this Rs 90,000 with Income Tax Department <\/span>(on behalf of you)<\/span><\/em>. <\/em>Bank shall issues him a TDS certificate<\/a> which reflects this deduction.\u00a0<\/span><\/p>\n

Now, we will discuss the latest TDS provisions which are inserted under the income tax act, 1961 and already applicable for Assessment year 2020-21<\/span><\/p>\n

\n
\n

In this article, we will discuss about...<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n