TDS/TCS Rates for AY 2014-15 AND AY 2015-16 FOR NON-RESIDENT OR FOREIGN COMPANY

Monday, September 29, 2014 | comments

CATEGORY B - WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY
Aggregate payment or credit subject to TDS during the financial year 2014-15 If recipient is non-resident non-corporate personIf recipient is non-domestic company
Rs. 1 crore or lessMore than Rs. 1 croreRs. 1 crore or lessMore than Rs. 1 crore but not more than Rs. 10 croreMore than Rs. 10 crore
Nature of paymentTDS (inclusive of SC :Nil, EC : 2%, SHEC : 1%)TDS (inclusive of SC : 10%, EC : 2%, SHEC : 1%)TDS (inclusive of SC :Nil, EC : 2%, SHEC : 1%)TDS (inclusive of SC : 2%, EC : 2%, SHEC : 1%)TDS (inclusive of SC : 5%, EC : 2%, SHEC : 1%)
• Sec. 192 - Payment of salary [normal tax rates are applicable – SC : 10% (if net income exceeds Rs. 1 crore), EC : 2% and SHEC : 1%]
• Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort30.933.9930.931.51832.445
• Sec. 194BB - Winnings from horse races30.933.9930.931.51832.445
• Sec. 194E - Payment to a non-resident foreign citizen sportsman/entertainer or non-resident sports association20.622.6620.621.01221.63
• Sec. 194EE - Payment in respect of deposits under National Saving Scheme, 198720.622.66NANANA
• Sec. 194F - Re-purchase of units of MF or UTI20.622.66NANANA
• Sec. 194G - Commission on sale of lottery tickets10.311.3310.310.50610.815
• Sec. 194LB - Payment/credit by way of interest by infrastructure debt fund5.155.6655.155.2535.4075
• Sec. 194LBA(2) - Payment of the nature referred to in section 10(23FC) by business trust to unit holders (applicable from October 1, 2014)5.155.6655.155.2535.4075
• Sec. 194LC - Payment/credit of interest by an Indian specified company on foreign currency approved loan/long-term infrastructure bonds (with effect from October 1, 2014, any bond) from outside India5.155.6655.155.2535.4075
• Sec. 194LD - Interest on a rupee denominated bond of an Indian company or Government security (from June 1, 2013)5.155.6655.155.2535.4075
• Sec. 195 - Payment/credit of other sum to a non-resident —
a. income of foreign exchange assets payable to an Indian citizen
20.622.66NANANA
b. income by way of long-term capital gains referred to in section 115E or section 112(1)(c)(iii)
10.311.3310.310.50610.815
c. short-term capital gains under section 111A
15.4516.99515.4515.75916.2225
d. any other long-term capital gains [not being covered by section 10(33), 10(36) and 10(38)]
20.622.6620.621.01221.63
e. income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (not being interest referred to in section 194LBor 194LC or 194LD)
20.622.6620.621.01221.63
f. royalty [see Note 5]
25.7528.32525.7526.26527.0375
g. royalty [not being royalty of the nature referred to in (fsupra] [see Note 6] –
□ where the agreement is made after March 31, 1961 but before April 1, 1976
30.933.9951.552.5354.075
□where the agreement is made on or after April 1, 1976
25.7528.32525.7526.26527.0375
h. fees for technical services [see Note 7] –
□ where the agreement is made after February 29, 1964 but before April 1, 1976
30.933.9951.552.5354.075
□ where the agreement is made on or after April 1, 1976
25.7528.32525.7526.26527.0375
i. any other income
30.933.9941.2042.02443.26
• Sec. 196B - Payment/credit of income from units (including long-term capital gains on transfer of such units) to an offshore fund10.311.3310.310.50610.815
• Sec. 196C - Payment/credit of interest of foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend referred to in section 115-O)10.311.3310.310.50610.815
• Sec. 196D - Payment/credit of income from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors20.622.6620.621.01221.63

Notes :


1. Under section 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under section 192. Under section 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment is subject to tax deduction.

2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90 (whichever is lower) [section 2(37A)(iii)].

3. Tax is not deductible under section 193, 194, 194A, or 194EE if the recipient makes a declaration in Form No. 15G/15H under the provisions of section 197A.

4. Under section 197 the recipient can apply the Assessing Officer in Form No. 13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if tax is deductible under section 194B, 194BB, 194E, 194EE,194F, 194-IA, 194LB, 194LC, 196B, 196C or 196D.

5. Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India.


6. Not being royalty of the nature referred to above, payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.


7. Fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.

---CATEGORY A - WHEN RECIPIENT IS RESIDENT  (Click Here)



---TDS Rates for AY 2014-15 AND  AY 2015-16 (Click Here)


---TAX ON DISTRIBUTION OF DIVIDEND, DISTRIBUTED INCOME FOR BUY-BACK OF SHARES AND DISTRIBUTION BY SECURITIZATION TRUST UNDER SECTIONS 115-O, 115QA AND 115TA (Click Here)


---TAX ON INCOME DISTRIBUTED BY UTI/MUTUAL FUND UNDER SECTION 115R (Click Here)




TDS Rates for AY 2014-15 AND AY 2015-16

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RATES FOR TAX DEDUCTION AT SOURCE
[AY 2014-15 & AY 2015-16]
Tax is deductible at source at the rates given in table (infra). If PAN of the deductee is not intimated to the deductor, tax will be deducted at source by virtue of section 206AA either at the rate given in the table or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher. TDS rates for the financial year 2014-15 are as follows—
CATEGORY A - WHEN RECIPIENT IS RESIDENT
Nature of paymentTDS (SC : Nil, EC :Nil, SHEC : Nil)
• Sec. 192 - Payment of salary [normal tax rates are applicable – SC : 10% (if net income exceeds Rs. 1 crore), EC : 2% and SHEC : 1%]
• Sec. 193 - Interest on securities—
 a.  interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company [not being listed securities in demat form], (c) any security of the Central or State Government [i.e., 8% Savings (taxable) Bonds, 2003, but not any other Government security]
10
 b.  any other interest on securities (including interest on non-listed debentures)
10
• Sec. 194 - Dividend—
 a.  deemed dividend under section 2(22)(e)
10
 b.  any other dividend
Nil
• Sec. 194A - Interest other than interest on securities10
• Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort30
• Sec. 194BB - Winnings from horse races30
• Sec. 194C - Payment or credit to a resident contractor/sub-contractor—
 a.  payment/credit to an individual or a Hindu undivided family
1
 b.  payment/credit to any person other than an individual or a Hindu undivided family
2
• Sec. 194D - Insurance commission10
• Sec. 194DA - Payment in respect of life insurance policy (applicable from October 1, 2014)2%
• Sec. 194EE - Payment in respect of deposits under National Savings Scheme, 198720
• Sec. 194F - Payment on account of repurchase of units of MF or UTI20
• Sec. 194G - Commission on sale of lottery tickets10
• Sec. 194H - Commission or brokerage10
• Sec. 194-I - Rent—
 a.  rent of plant and machinery
2
 b.  rent of land or building or furniture or fitting
10
• Sec. 194-IA - Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land)1
• Sec. 194J - Professional fees, technical fees, royalty or remuneration to a director10
• Sec. 194LA - Payment of compensation on acquisition of certain immovable property10
• Sec. 194LBA(1) - Payment of the nature referred to in section 10(23FC) by business trust to resident unit holders (applicable from October 1, 2014)10%

---CATEGORY B - WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY  (Click Here)



---TCS Rates for AY 2014-15 AND  AY 2015-16 (Click Here)


---TAX ON DISTRIBUTION OF DIVIDEND, DISTRIBUTED INCOME FOR BUY-BACK OF SHARES AND DISTRIBUTION BY SECURITIZATION TRUST UNDER SECTIONS 115-O, 115QA AND 115TA (Click Here)


---TAX ON INCOME DISTRIBUTED BY UTI/MUTUAL FUND UNDER SECTION 115R (Click Here)



LATEST TDS/TCS RPU 4.1 FOR SUBMITTING TDS RETURN APPLICABLE W.E.F. 23.09.2014

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NSDL has provided latest TDS RPU version 4.1 for submitting TDS return w.e.f. 23.09.2014.

Key features of RPU 4.1

Lower/ Non-deduction Certificate number issued by Assessing Officer (in deductee  details): Length of field “Certificate number issued by the Assessing Officer u/s 197 for  non-deduction/lower deduction” under deductee details (i.e. in Annexure 1) has been  restricted to 10 digits. Certificate number to be quoted only in case of lower  deduction/no deduction.

Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to  the deductee in case of Form no. 24Q should be less than or equal to 999999999.00.   Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable  Income” to the deductee in case of Form no. 24Q, Q4 should be less than or equal to  999999999.00. 

Accounts Office Identification Number (AIN): It is mandatory to quote the AIN in case  of Form no. 24Q and 26Q for deductor category “Central Government” & “State  Government”.

Deductee reference number and Employee serial number (in deductee details): It is  mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and  “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid. 

Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted  in field “Total Tax deducted amount” should be less than or equal to value quoted in  field “Amount paid/ credited” under deductee details. 

Remarks for higher deduction (in deductee details): In case of 'C' (i.e. for higher  deduction) remark in Deductee details (Annexure I) only below details will be allowed  to be updated in correction statements:
           o Deductee PAN
           o Amount of payment
           o Date of payment

Country name (in deductee details): In case of Form no. 27Q, the country name  “MEXICO” has been updated to “UNITED MEXICAN STATES”. 

State name: State name “UTTARANCHAL” has been updated to “UTTARAKHAND”.

 Incorporation of latest FVU Version 4.4 and 2.140.

Key feature of FVU version 4.4

Lower/ Non-deduction Certificate number issued by Assessing Officer (in deductee  details): Length of field “Certificate number issued by the Assessing Officer u/s 197 for  non-deduction/lower deduction” under deductee details (i.e. in Annexure I) has been  restricted to 10 digits. Certificate number to be quoted only in case of lower  deduction/no deduction. This validation is applicable to regular and correction (C3 & C9) statements pertaining to FY 2013-14 and onwards.

Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to  the deductee in case of Form no. 24Q should be less than or equal to 999999999.00.  This validation is applicable to regular and correction (C3 & C9) statements pertaining to  all FYs. 

Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable  Income” to the deductee in case of Form no. 24Q-Q4 should be less than or equal to  999999999.00. This validation is applicable to regular and C4 correction statements  pertaining to all FYs.  Deductee reference number and Employee serial number (in deductee details): It is  mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and  “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid.  This validation is applicable to regular and correction (C3 & C9) statements pertaining to  all FYs. 

Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted  in field “Total Tax deducted amount” should be less than or equal to value quoted in  field “Amount paid/ credited” under deductee details. This validation is applicable to  regular and correction (C3 & C9) statements pertaining to all FYs.  Accounts Office Identification Number (AIN): It is mandatory to quote the AIN in case  of Form no. 24Q and 26Q for deductor category “Central Government” & “State  Government”. This validation is applicable to regular and correction (C1 & C2, C3 (if  deductor details are updated)) statements pertaining to FY 2013-14 onwards.

Collection code “J” (Sale of certain Minerals) and “K” (Cash case of Bullion and  Jewellary): Collection code “J” and “K” is applicable only for TCS (Form no. 27EQ) regular and C9 correction statements pertaining to Q2 of FY 2012-13 onwards. 

Remarks for higher deduction (in deductee details): Remarks for higher deduction in  deductee details i.e., flag “C” to be mentioned only if the deductee PAN is structurally  invalid. This validation is applicable to regular statement and correction (C3 & C9)  statements pertaining to FY 2010-11 onwards:Key feature of FVU version 4.4 

 Country name (in deductee details): In case of Form no. 27Q, the country name  “MEXICO” has been updated to “UNITED MEXICAN STATES”. This change is applicable to  regular and correction (C3 & C9) statements pertaining to FY 2013-14 onwards.

 Applicability of FVU version: From September 23, 2014, FVU version 4.4 would be mandatory for statements pertain  to FY 2010-11 onwards.

Key feature of FVU version 2.140

Amount paid/ credited (in deductee details): Value in field “Amount paid/ Credited” to  the deductee in case of Form no. 24Q should be less than or equal to 999999999.00.  This validation is applicable to regular and correction (C3 & C9) statements pertaining to  all FYs.

Total Taxable income (in salary details – Annexure II): Value in field “Total Taxable  Income” to the deductee in case of Form no. 24Q-Q4 should be less than or equal to  999999999.00. This validation is applicable to regular and C4 correction statements  pertaining to all FYs. 

Deductee reference number and Employee serial number (in deductee details): It is  mandatory to quote in the field “Deductee reference no.” (In case of Form no. 26Q) and  “Employee serial no.” (In case of Form no. 24Q), where PAN of the deductee is invalid.  This validation is applicable to regular and correction (C3 & C9) statements pertaining to  all FYs.

Total tax deducted amount (in deductee details): In case of Form no. 24Q, value quoted  in field “Total Tax deducted amount” should be less than or equal to value quoted in  field “Amount paid/ credited” under deductee details. This validation is applicable to  regular and correction (C3 & C9) statements pertaining to all FYs. 

 Applicability of FVU version: From September 23, 2014, FVU version 2.140 would be mandatory for statements  pertain to FY 2007-08 to FY 2009-10.

Download RPU 4.1 (Click Here)




Tally :- Single Email or Bulk Email from Tally Accounting Software

Sunday, September 28, 2014 | comments

                        Tally is a Accounting Software which makes easy life.  A person who use tally for Accounts feels easy in accounting.  There is no need to download accounting ledger or no need to attach downloaded ledger file to send email to customer or customer's etc. 

                             Email processing through tally is too simple which can not be imagine.  In the old version, It was told by tally customer care that SMTP address are required from ISP (Internet Service Provider) to send email from tally.   But now the same has been improved by Tally.   

Requirements for email from Tally :-


  • Email user id and password of Gmail, Yahoo or Hotmail.  
  • Rediffmail users can not use Option email from tally directly.  It is paid email server. 
  • Use Alt+M to email from any screen.

     
Multiple Emails to your Customers / Creditors  
       Tally user may use multiple or Bulk email option  to send emails to their customers.
Path = Tally gateway > Multi Account Printing  > Account Books > Ledgers >Group of Accounts > Sundry Debtors > Alt+M  > Select "All ledgers" in field  "To  Email Address" as shown in below screen

Confirmation of Email to Customers or Creditors
               Sometimes customer requires to produce evidence of email sending to him.  In such case Confirmation can be printed out from  sent emails  From "E-Mail Address" after opening Gmail Account or Yahoo Account or Hotmail Account.


BSNL Broad band users can also use email from tally (Click Here)

Income Tax :- Due Date for Filing of Income Tax Return Extended from 30.09.2014 to 30.11.2014 in Audit Cases

Saturday, September 27, 2014 | comments

Income Tax Return filing Date has been extended from 30.09.2014 to 30.11.2014 for filing Income Tax Return for A.Y. 2014-15 for those assessee who are required to obtain Tax Audit u/s 44AB.  Central Board of Direct Taxes has issued order under section 119 of the Income-tax Act, 1961 dated 26-09-2014. As it is serious matter in the interest of Assessee, copy of complete orders issued by CBDT are given below for satisfaction.


F.No.153/53/2014-TPL (Pt.I)
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
****
North Block, TPL Division
New Delhi, the 26th September, 2014

Order under section 119 of the Income-tax Act, 1961

             Section 44AB of the Income-tax Act, 1961 („the Act‟) read with rule 6G of  the Income-tax Rules, 1962 („the Rules‟) requires certain persons to file tax audit  report in Form No.3CA/Form No.3CB along with prescribed particulars in Form  No.3CD. Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax  audit report have been revised. As per section 44AB of the Act, the tax audit report has to be obtained and furnished electronically by 30th November of the Assessment  year in case of an assessee who is required to furnish report under section 92E of the  Act and 30th September of the Assessment year in case of other assessees. 

2. In view of the representations received by the Central Board of Direct Taxes  („the Board‟), the due date for obtaining and furnishing of tax audit report under  section 44AB of the Act for assessment year 2014-15 in respect of assessees who are  not required to furnish report under section 92E of the Act has been extended from  30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated  20th August, 2014 in exercise of power of the Board under section 119 of the Act. It  has been further clarified that the tax audit report filed during the period from  01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit  report under section 44AB.

3. After the extension of the due date for obtaining and furnishing of tax audit  report under section 44AB of the Act, a number of representations have been received  in the Board requesting for extension of due date for furnishing of return of income  for the assessees who are required to obtain and furnish tax audit report under section  44AB of the Act and for whom the due date for furnishing return of income under  section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed  in various High Courts for directing the Board to extend the due date for furnishing of  return of income from 30th September, 2014 to 30th November, 2014 in conformity  with the extension of the due date for filing of tax audit report. 

4. In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this  issue. However, before the pronouncement of judgement, the petitioner withdrew the  writ petition on 23rd September, 2014. The High Court of Madras passed interim  order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and  directed the Board to consider the request of the assessees in general and consider the  extension of time for furnishing the return of income, in tune with the order passed by  the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the  High Court of Judicature at Hyderabad for the State of Telangana and the State of  Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a  direction to the Board to dispose of the representation of the petitioners. The High  Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated  25.09.2014 and directed the Board to look into the practical difficulties of the  petitioners and take a just and proper decision in this matter.

5. The Gujarat High Court allowed Special Civil Application No.12656 of 2014  with Special Civil Application No.12571 of 2014 and vide judgement dated  22.09.2014 directed the Board to modify the order under section 119 of the Act dated  20.08.2014 by extending the due date for furnishing the return of income to 30th November, 2014. It has also been further stated in the said order that it would be  open for the Board to qualify such relaxation by extending the due date for all  purposes, except for the purpose of Explanation 1 to section 234A of the Act.  

6. In compliance to the judgement of High Court of Gujarat and after considering  the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of  power conferred by section 119 of the Act, hereby extends, subject to para 7 below,  the `due-date‟ for furnishing return of income from 30th September, 2014 to  30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in  case of an assessee, who,  

(i) is required to file his return of income by 30th September, 2014 as per clause  (a) of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act,  1961; and 


(ii) is also required to get his accounts audited under section 44AB of the Act or is  a working partner of a firm whose accounts are required to be audited under  section 44AB of the Act. 


7. There shall be no extension of the “due date” for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section  234A of the Act. 

8. For removal of doubt, it is clarified that for an assessee (other than working  partner of a firm which is required to obtain and furnish tax audit report), who is  required to file its return of income by 30th September, 2014 but not required to obtain  and furnish tax audit report under section 44AB, the due date for furnishing of return  of income for assessment year 2014-15 remains as 30th September, 2014.

(Rajesh Kumar Bhoot)
Director (TPL)
Copy to:-

(i) The Chairman (CBDT), All Members, Central Board of Direct Taxes for  information.

(ii) All Cadre Controlling Pr. Chief Commissioners of Income-tax with a request to  circulate amongst all officers in their regions/charges.

(iii) The Pr. Director General of Income Tax (Admn.) Mayur Bhawan, New Delhi. 

(iv) The Director General of Income Tax (Systems) with a request for uploading it on the  Departmental website. 

(v) Commissioner of Income Tax (M&TP), CBDT.

(Rajesh Kumar Bhoot)
Director (TPL)
 
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