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
Understanding Stock Audits: Process and Importance
If you run a business that deals with physical goods, you’ve likely heard about stock audits. But what exactly is a stock audit, and why is it so important for your business?In this guide, we will break down everything you need to know about stock audits, explaining the process in simple terms so that anyone, even beginners, can understand and apply it to their … [Read more...] about Understanding Stock Audits: Process and Importance
Understanding Cash Credit: A Simple Guide for Businesses
When running a business, having enough cash to cover daily expenses and keep things running smoothly is essential. But sometimes, businesses don’t have enough money at hand. That’s where cash credit comes in. It's a financial tool that helps businesses borrow money from a bank or financial institutions to cover short-term needs like paying for raw materials, employee salaries, … [Read more...] about Understanding Cash Credit: A Simple Guide for Businesses
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