P.J.
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Important Provisions Of TDS Applicable w.e.f 1st June,2015
Important Provisions of TDS applicable from 01st June, 2015.A Gist of the same is as follows -
1)Bank/Cooperative bank and post office RD recurring deposits interest, if more than 10000/- per year will be liable to TDS w.e.f. 1-6-2015. If PAN is not given then TDS will be deducted @ 20%. Also, henceforth bank wise Income will be considered for TDS deduction on time deposits instead of branch wise limits.
2) W.e.f. 1-6-2015, any transaction in Real Estate including agricultural land shall be required to be made through Account Payee cheque or RTGS if it is of Rs. 20000/- or more, only such farmers are free from this if both of them have agricultural income only and not any other income chargeable to income tax i.e. both of them should not have any income like interest/rent/salary etc. even of one rupee, i.e. he should not have even income of one rupee other than only agricultural income. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of Property.
This provision is similar to earlier provision putting an embargo on accepting and repaying loans in cash in excess of Rs. 20,000/-.
3) Transactions of purchase by consumer of fridge, TV, Car, Jewellery can be made in cash or cheque but if more than Rs.1 Lakh then PAN of buyer will have to be quoted. (In case of Jewellery if more than Rs. 5 Lakh and even a cash transaction of any amount therein, then TCS @1% will have to be made.) CBDT has not yet made any circular or rule regarding quoting of PAN for transaction of Movable properties exceeding Rs.1 Lakh.
4) W.e.f. 1-6-2015 in case of payment of Transport Freight as a single transaction of more than Rs. 30000/- or of more than Rs. 75000/- in a year then TDS will have to be deducted @ 1% and in case of recipient being firm or a company then TDS @ 2% will have to be made. If the recipient owns 10 or less Goods Carriage then he can give a declaration to this effect then TDS will not be deducted even if payment exceeds the threshold of Rs.30000 / Rs.75000. Till now Income tax rules have not been notified for 2015 therefore format of declaration to be obtained in case of 10 or less trucks has not also been notified yet now, therefore until specified format comes Self declaration from truck owners can be obtained.
5) W.e.f. 1-6-15 if any payment is made by any person to a non-resident, (not being a company) or to a foreign company, any sum whether or not chargeable to Income tax shall furnish Form No. 15CA & 15CB. Earlier only income chargeable to income tax in India had to be reported only but now all payments are covered. If such information is not furnished or the information furnished is inaccurate then U/s 271-I penalty of Rs. 1 Lakh may be imposed. This is also likely to be forming part of regular reporting items in Income Tax Returns henceforth so to escape from this provision will be difficult. However payments for Imports in regular course of Business are not covered here.
6) Till 31-5-2015 Income tax dept. had no power to process TDS return U/s 200A to levy TDS late fee U/s 234E but w.e.f. 1-6-2015 as per Sec. 200A Income tax dept. can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return. So if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Now if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.
7) If the payment is made to a person (including non resident) whose receipts are subject to TDS shall mandatory furnish his PAN to the deductor (even though the deductee files a declaration in form no. 15G or 15H) otherwise the deductor shall deduct the TDS at higher of the following rates the applicable rate prescribed in the Act or 20%. So practically now it will be advisable for all to have a PAN.
https://www.linkedin.com/pulse/important-provisions-tds-applicable-wef-1st-june2015-bandai
Important Provisions of TDS applicable from 01st June, 2015.A Gist of the same is as follows -
1)Bank/Cooperative bank and post office RD recurring deposits interest, if more than 10000/- per year will be liable to TDS w.e.f. 1-6-2015. If PAN is not given then TDS will be deducted @ 20%. Also, henceforth bank wise Income will be considered for TDS deduction on time deposits instead of branch wise limits.
2) W.e.f. 1-6-2015, any transaction in Real Estate including agricultural land shall be required to be made through Account Payee cheque or RTGS if it is of Rs. 20000/- or more, only such farmers are free from this if both of them have agricultural income only and not any other income chargeable to income tax i.e. both of them should not have any income like interest/rent/salary etc. even of one rupee, i.e. he should not have even income of one rupee other than only agricultural income. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of Property.
This provision is similar to earlier provision putting an embargo on accepting and repaying loans in cash in excess of Rs. 20,000/-.
3) Transactions of purchase by consumer of fridge, TV, Car, Jewellery can be made in cash or cheque but if more than Rs.1 Lakh then PAN of buyer will have to be quoted. (In case of Jewellery if more than Rs. 5 Lakh and even a cash transaction of any amount therein, then TCS @1% will have to be made.) CBDT has not yet made any circular or rule regarding quoting of PAN for transaction of Movable properties exceeding Rs.1 Lakh.
4) W.e.f. 1-6-2015 in case of payment of Transport Freight as a single transaction of more than Rs. 30000/- or of more than Rs. 75000/- in a year then TDS will have to be deducted @ 1% and in case of recipient being firm or a company then TDS @ 2% will have to be made. If the recipient owns 10 or less Goods Carriage then he can give a declaration to this effect then TDS will not be deducted even if payment exceeds the threshold of Rs.30000 / Rs.75000. Till now Income tax rules have not been notified for 2015 therefore format of declaration to be obtained in case of 10 or less trucks has not also been notified yet now, therefore until specified format comes Self declaration from truck owners can be obtained.
5) W.e.f. 1-6-15 if any payment is made by any person to a non-resident, (not being a company) or to a foreign company, any sum whether or not chargeable to Income tax shall furnish Form No. 15CA & 15CB. Earlier only income chargeable to income tax in India had to be reported only but now all payments are covered. If such information is not furnished or the information furnished is inaccurate then U/s 271-I penalty of Rs. 1 Lakh may be imposed. This is also likely to be forming part of regular reporting items in Income Tax Returns henceforth so to escape from this provision will be difficult. However payments for Imports in regular course of Business are not covered here.
6) Till 31-5-2015 Income tax dept. had no power to process TDS return U/s 200A to levy TDS late fee U/s 234E but w.e.f. 1-6-2015 as per Sec. 200A Income tax dept. can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return. So if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Now if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.
7) If the payment is made to a person (including non resident) whose receipts are subject to TDS shall mandatory furnish his PAN to the deductor (even though the deductee files a declaration in form no. 15G or 15H) otherwise the deductor shall deduct the TDS at higher of the following rates the applicable rate prescribed in the Act or 20%. So practically now it will be advisable for all to have a PAN.
https://www.linkedin.com/pulse/important-provisions-tds-applicable-wef-1st-june2015-bandai
