Lower TDS certificate

Application for the NIL / Lower TDS Deduction Certificate for FY 2020-21 may be made from 28 February 2020.

Under the provisions of the Income Tax Act, deduction of tax deducted at Sources (TDS) is mandatory while making payments. The taxpayer making the payment must deduct the TDS and deposit it to the Department of Income Tax before the assigned due date for depositing the TDS.

At times, the TDS is deducted from the total income of the taxpayer, i.e. the recipient, whereas the total tax liability of the taxpayer is calculated on the profit of that financial year. It is in accordance with the prevailing income tax rates/rules which may be less than the total amount of the TDS deducted.

In those cases, TDS will be deducted first, and the taxpayer can claim the refund of the excess amount of TDS deducted while filing the return on income tax (ITR). But the whole process turns out to be a hassle for many taxpayers because firstly TDS is deducted and later on the taxpayer asks for its refunds by filing ITR.

To make it easy, 

Section 197 has been issued by the government which allows taxpayers to use the Nil / Lower  Deduction of the TDS Certificate. But often the process of obtaining the Nil / Lower Deduction TDS Certificate takes a lot more time than expected.

To address this issue, the Government is allowing taxpayers to apply for the Nil / Lower TDS Deduction Certificate for the financial year 2020-21 from 28 February 2020.

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Check why you should focus on gathering TDS on Rent?

TDS on Rent of Property to be deducted by Individuals and HUFs too

Prior to 2017, TDS was required to be deducted under segment 194-I just by a predefined class of business and experts who required to get impose review and when the lease paid/payable amid the budgetary year is more than ? 1,80,00.

In spending plan 2017 certain changes connected for TDS on lease and rates at which TDS on lease is to be deducted. According to Finance Act, 2017, “TDS on Rent” under area 194-IB is obligated to be deducted by Individuals or HUFs additionally in charge of paying to an occupant month to month lease surpassing ? 50,000.

Rules for individual Tenant and Owner of the property

So as to disentangle and diminish the weight on individual inhabitants and proprietors Section 194-IB of the Income Tax Act, 1961 Act Provided a few rules/Points:

A). Rules for the Tenant of the Property:

  • All people or HUFs (with the exception of those at risk to review under proviso an and b of segment 44AB) paying month to month lease to an inhabitant in abundance of Rs. 50,000 are at risk to deduct 5% TDS under segment 194-IB.
  • Inhabitant needs to gather the Permanent Account Number (PAN) of the Landlord and confirm the equivalent with the Original PAN card.
  • Download and outfit TDS declaration in Form 16C from TRACES and issue to the Landlord/Lessor/Payee inside 15 days from the due date of outfitting of the Callahan cum proclamation in Form 26QC.
  • In the event that the Landlord/Lessor/Payee is a non-inhabitant, obligation to deduct TDS emerges under segment 195 of the Income-charge Act, 1961.
  • TDS derivation is discretionary to be deducted each month and the aggregate TDS For the entire Financial Year is required to be deducted in the most recent month of the money related year.
  • TAN number not required, Use PAN number rather than TAN

B). Rules for Landlord of the Property:

  • Give your PAN to the Tenant for outfitting data in regards to TDS to the Income Tax Department.
  • Check store of duties deducted by the Tenant in your Form 26AS Annual Tax Statement.
  • Ask Form 16C from your inhabitant which has been downloaded from TRACES site as it were.

TDS rates on Rent

  • Plant, apparatus or hardware 2%.
  • Lease of land, building, and furniture for people and Hindu Undivided Family-5%.
  • Lease of land, building or furniture if there should be an occurrence of other people who required expense review 10%.

If there should arise an occurrence of extra help, you may counsel an EZTax.in master to get the correct direction required.

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Due dates

Due dates for the month of April 2018

 

Due dates for the month of April 2018.

7 April 2018 – 

The due date for deposit of Tax deducted by an office of the government for the month of March 2018. However, all sum deducted by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

Due dates for the month of April 2018

14 April 2018 – 

The due date for issue of TDS Certificate for tax deducted underSection 194-IA in the month of February 2018

14 April 2018 – 

The due date for issue of TDS Certificate for tax deducted underSection 194-IB in the month of February, 2018

15 April 2018 – 

The quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for the quarter ending March 2018

30 April 2018 – 

The due date for furnishing of Form 24G by an office of the Government where TDS for the month of March 2018 has been paid without the production of a challan

30 April 2018 – 

The due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of March 2018

30 April 2018 – 

The due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of March 2018

30 April 2018 – 

The due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March 2018.

30 April 2018 – 

The due date for e-filing of a declaration in Form No. 61 containing particulars of Form No. 60 received during the period October 1, 2017, to March 31, 2018.

30 April 2018 –

The due date for uploading declarations received from recipients in Form. 15G/15H during the quarter ending March, 2018.

GSTR-4 (Jan-Mar, 2018)

Apr 18th, 2018

Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores

GSTR-1 (Jan-Mar, 2018)

Apr 30th, 2018

Monthly return for registered persons with an aggregate turnover of more than Rs. 1.50 Crores

GSTR-1 (Feb 2018)

Apr 10th, 2018

 

AOC-4 XBRL for all eligible companies required to prepare or voluntarily prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 for the financial year 2016-17, without additional fee till 30th April 2018.

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