Moreover, you would not be able to take a tax credit of the TDS, at the time of filing your income tax return. What happens when TDS is not deposited by deductor?Ī. In case, a deductor (employer or organisation) does not pay the TDS amount to the Income Tax department, the TDS will not be credited against your PAN in your Form 26AS. Interest earned from Indian company (under Section 194LC).Income on securities from foreign institutional investors (under Section 196D).Income from foreign currency bonds / shares of an Indian company (under Section 196C).Long term capital gains on units from offshore funds (under Section 196B).Other sum payable to an NRI (under Section 195).Interest from infrastructure debt fund (under Section 194LB).Payment of compensation on acquiring an immovable property (under Section 194LA).
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Winning from horse races (under Section 194BB).Winning from lottery or crosswords (under Section 194B).Interest (excluding interest on securities) (under Section 194A).Interest on Securities (under Section 193).On which items TDS should be deducted?Ī. According to the Income Tax Act, the following incomes are subject to TDS deductions: Payment / Commission / Brokerage made to professional of Rs 50 lakh and aboveįAQs Q. Payment of monthly rent by an individual or HUF more than Rs. Life Insurance Plans not tax-exempt under Section 10(10D) Moreover, TDS exemptions are provided against the payment of interest from:Ģ) Financial corporations formed under the Finance Billĥ) Investments in LIC (Life Insurance Corporation of India), UTI (Union Trust of India) and co-operative societiesĦ) Interests earned in savings or recurring deposit accounts held with any co-operative societies or commercial banksħ) Interest earned on NSC (National Savings Certificate), Indira Vikas Patra (IVP), or KVP (Kisan Vikas Patra)Ĩ) Interest earned on NRE (Non-Resident External Rupee) accountĩ) Any institutions designated as Nil TDS organisationġ0) Interest received on the compensation from the Motor Vehicles Claims Tribunal TDS deduction is not levied on payments made in favour of RBI (Reserve bank of India), or any recompense made towards the central government. What are the Different TDS Deduction Exemptions?įew cases are there, wherein the TDS exemption is offered. Payment of deposits under National Savings Scheme Payment / Commission / Brokerage made to professional of Rs.50 lakh and above
Payment of monthly rent by an individual or HUF more than Rs.50,000 Life Insurance Plans not tax-exempt under Section 10(10D)Ĭommission or brokerage received (not including Insurance Commission) Winnings from the lottery, crosswords, or any such game Interest received (other than Interest on Securities such as Fixed deposit interest) Dividend received from Mutual funds and shares