Section 194IA of the Income Tax Act in India mandates Tax Deducted at Source (TDS) on the purchase of immovable property. This provision ensures that tax is collected upfront during real estate transactions, making it easier for the government to track tax liabilities.In a property transaction, the buyer is responsible for deducting and depositing TDS from the total … [Read more...] about Tax Deducted at Source (TDS) on purchase of property: Section 194IA
TDS on commission and brokerage: Section 194H Explained
Section 194H of the Income Tax Act explains the rules for deducting tax on commission or brokerage payments. Anyone paying commission or brokerage to residents must deduct tax, except for individuals and Hindu Undivided Families (HUFs).The tax rate is 5% if the total commission exceeds ₹15,000 in a year.Individuals and HUFs required to have their accounts audited (under … [Read more...] about TDS on commission and brokerage: Section 194H Explained
TDS on Insurance payments at the time of maturity or surrender of policy
Life insurance not only gives you financial security but also helps to save tax. Life insurance premium paid during the financial year can be claimed as tax deduction up to a maximum limit of Rs. 1, 50,000 as specified in section 80C. Insurance companies are required to deduct tax while paying maturity proceedings to policyholders. In this article, we will be discussing the TDS … [Read more...] about TDS on Insurance payments at the time of maturity or surrender of policy
Section 194D – TDS on Insurance Commission
Section 194D of the Income Tax Act mandates TDS (Tax Deducted at Source) on insurance commissions paid to agents and brokers. As of Budget 2024, the TDS rate on insurance commissions has been reduced to 2% from the previous rate of 5%. This change aims to provide relief to insurance agents and promote the insurance sector.Eligibility for tax deduction under section … [Read more...] about Section 194D – TDS on Insurance Commission
TDS on winnings from lotteries, crossword puzzles, games, horse races – section 194B and 194BB
Tax at the rate of 30% has to be deducted if winnings are from lotteries, crossword puzzles and games including card game.The person who is responsible for making payments to the winner of lotteries, crossword puzzles and games is required to deduct tax under section 194B at the rate of 30% from the winnings amount at the time of payment.Section 194B is not applicable … [Read more...] about TDS on winnings from lotteries, crossword puzzles, games, horse races – section 194B and 194BB