TAX DEDUCTION AT SOURCE

DAY 5

SESSION 1 & 2

Slide 5.1

Introduction Two broad head of levy of tax are

Direct levy and Tax deduction at source

Deduction of tax at source is a convenient method of tax collection

is less painful to the person from whose income such tax is deducted

saves time on the part of the income-tax department

Slide 5.1

Introduction Tax deduction is the responsibility of the person making

the payment i.e. Employer in the case of salary paid to employee payer of interest i.e. borrower In the case of winnings from lottery, crossword puzzles, horse

races, as the person who makes the payment In all other cases too the payer of the income

Slide 5.1

Incomes subject to TDS Salary income (s.192) Interest on securities (s.193) Dividends (s. 194) Interest other than interest on securities (s. 194A) Winnings from lottery or crossword puzzles (s.

194B)

Slide 5.1

Incomes subject to TDS Winnings from horse races (s. 194BB) Payments to contractors or sub-contractors (s.194C) Insurance commission (s.194D) Payments to non-resident sportsmen or sports associations

(s.194E) Payments in respect of deposits under national savings

scheme etc. (s.194EE) Slide 5.1

Incomes subject to TDS Payments in respect of repurchase of units by mutual

fund or unit trust of India (s.194F) Commission on sale of lottery tickets (s.194G) Commission, brokerage etc. (s.194H) Rent (s.194I) Fees for profession-al or technical services [Sec. 194J]

Slide 5.1

Incomes subject to TDS Income in respect of units [Sec. 194K] Payment to non-resident [Sec. 195] Units held by an Off-shore Fund [Sec. 196B], Income from foreign currency bonds [Sec. 196C] Income of Foreign Institutional Investors from

securities [Sec. 196D]

Slide 5.1