Q: Is TDS deducted from salary only ?

Ans:  TDS is deducted from various types of payments. 

TDS would stand for tax deducted at source. TDS is the tax which would be deducted on source of income.  Any company or person making a payment will be required to deduct tax at source if the payment exceeds certain threshold limits.

TDS is deducted on the following types of payments:

Salaries


Interest payments by banks


Commission payments


Rent payments


Consultation fees


Professional fees

Comments

Post a Comment

Popular posts from this blog

Q: What are the constitutional provisions of income tax act, 1961 ?

Ans: The constitutional provisions of income tax are given from article 265 to article 289 of indian constitution.  According to article 265, only the authority of law can collect the taxes. The article 266 talks about the consolidated funds and public accounts of India as well as the states. Consolidated funds are that funds in which all the reciepts of government of India are credited like tax, loans taken , treasury bills , etc. Article 267 Contigency funds are those funds that are maintained by president as well as held by finance secretory on behalf of president.  Contingency funds are used at the time of emergency such as natural calimities as well as crises like floods, tsunamis and earthquakes. Article 268 Under this article, it is explained that the duties are levied by the Union but they are collected as well as appropriated by the states. For eg. Stamp duties, excise duties on medical as well as toilet preparations. Article 269 Taxes would be levied as well a...
Read more

Q: What are the types of capital gain ?

 Ans: The capital gain means that the profit which is earned from the sale of an asset. The capital gain is the difference of actual price at which the asset was acquired and the price at which the asset was sold or transferred. The capital gain can be either long term or short term and it depends upon the period of holding .The tax in long term is more as compared to the tax in short term. The rate of tax on long term ranges from 0 percent to maximum 20 percent.
Read more

Q: What is an interim budget under Income Tax Act, 1961 ?

Ans: The Income-tax Act, 1961 is the statute of Income Tax in India. It provides for levy, administration, collection as well as recovery of Income Tax. The Government of India brought a draft statute  called the "Direct Taxes Code" which was made to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957. However the bill was later scrapped. The Income tax act, 1961 comprises of 23 chapters and 298 sections.   The Government of India presents finance bill which is called budget every year in the month of February. The finance budget brings many amendments in Income-tax Act, 1961 that also incudes tax slabs rates. The amendments will be generally applicable to the next following financial year beginning from 1 April unless otherwise specified. Such amendments will become the part of the income tax act after the approval of the president of India.   When the central government would like to withdraw money from consolidated fund of India for the specifi...
Read more