Section 194N of the Income Tax Act of India was introduced to reduce cash transactions and encourage digital payments. As part of this initiative, the government mandated that banks, cooperative banks, and post offices deduct Tax Deducted at Source (TDS) on large cash withdrawals made by individuals. The primary aim is to curb unaccounted cash transactions and promote a … [Read more...] about TDS on Cash Withdrawals: Complete Guide to Section 194N
Income Tax
Understanding TDS on Insurance Commission and Withdrawals: A Simplified Guide
Tax Deducted at Source (TDS) is a method of tax collection where the payer deducts tax from the income of the payee and submits it to the government. If you're dealing with insurance commission or life insurance payments, it's essential to understand the relevant TDS provisions under Section 194D and Section 194DA of the Income Tax Act.In this article, we’ll break down the … [Read more...] about Understanding TDS on Insurance Commission and Withdrawals: A Simplified Guide
TDS on Interest from Securities: A Deep Dive into Section 193
Section 193 explains the rules for deducting tax on interest payments from securities. If someone pays interest on securities to a resident (a person living in India), they must deduct tax from that payment according to Section 193.These rules do not apply when the interest is paid to a non-resident (a person not living in India).Section 193 mainly deals with how tax is … [Read more...] about TDS on Interest from Securities: A Deep Dive into Section 193
Understanding TDS on Rent: A Simple Guide to Sections 194I, 194IB, and 194IC
Rent is the amount people pay to use a property, like land, buildings, or equipment. Whether it's for a lease, sub-lease, or other agreements, rental income can come from many sources. However, in India, the government requires a part of this rental income to be deducted as tax at the source. This is known as Tax Deducted at Source (TDS), and it is guided by specific … [Read more...] about Understanding TDS on Rent: A Simple Guide to Sections 194I, 194IB, and 194IC
Income tax Inquiry Notice before Assessment of Tax: Section 142(1)
The Income Tax Department sends a notice for different reasons. These can include not filing your tax return, mistakes in your return, missing information, reporting less income than you should, suspicions of tax cheating, checking past filings, and other issues.A notice under section 142(1) is sent when you haven’t filed your return or when the department needs more … [Read more...] about Income tax Inquiry Notice before Assessment of Tax: Section 142(1)